FAC Explorer

Finding 20281 (2022-002)

Material Weakness Repeat Finding
Requirement
ABEIN
Questioned Costs
-
Year
2022
Accepted
2023-06-11
Audit: 26238
Organization: Sergeant Bluff-Luton Community School District (IA)
Auditor: Nolte Cornman & Johnson PC

AI Summary

  • Core Issue: One employee has too much control over multiple financial areas, risking incompatible duties.
  • Impacted Requirements: This violates the principle of segregation of duties, which is crucial for internal controls.
  • Recommended Follow-up: Review and redistribute responsibilities to ensure no single employee manages conflicting tasks.

Finding Text

One important aspect of the internal control structure is the segregation of duties among employees to prevent an individual employee from handling duties which are incompatible. We noted one individual has control over portions of one or more of the following areas for the District relating to federal programs; cash, investments, receipts, disbursements, wire transfers, financial reporting, computer systems and journal entries. See finding 2022-001.

Corrective Action Plan

We are reviewing all accounting procedures to determine changes to be implemented. We have implemented changes with our cash receipts, journal entries, wire transfers and bank reconciliations.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 20282 2022-002
    Material Weakness Repeat
  • 596723 2022-002
    Material Weakness Repeat
  • 596724 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $928,612
84.425 Education Stabilization Fund $608,170
32.009 Emergency Connectivity Fund Program $234,000
10.553 School Breakfast Program $132,490
84.010 Title I Grants to Local Educational Agencies $109,646
93.575 Child Care and Development Block Grant $60,345
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $44,059
84.367 Improving Teacher Quality State Grants $39,516
84.048 Career and Technical Education -- Basic Grants to States $14,062
84.424 Student Support and Academic Enrichment Program $10,000
84.027 Special Education_grants to States $9,980
93.658 Foster Care_title IV-E $830
10.649 Pandemic Ebt Administrative Costs $614