Finding 21297 (2022-002)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2022-11-14

AI Summary

  • Core Issue: The district lacks adequate personnel to ensure that different employees manage separate parts of financial transactions.
  • Impacted Requirements: Internal controls must ensure that authorization, recording, and custody of assets are handled by different individuals to minimize risk.
  • Recommended Follow-Up: Assess staffing levels and consider reallocating responsibilities or hiring additional personnel to improve segregation of duties.

Finding Text

MATERIAL WEAKNESS 2022-002 Internal Control Structure Design Program: Child Nutrition Cluster Assistance Listing # 10.555 & 10.553 Condition: Adequate personnel are not available to assign responsibilities in such a way that different employees handle different parts of the same transaction. Cause: District has limited number of personnel. Criteria: Internal controls should be in place that provides reasonable assurance that authorization or approval of transactions, recording of transactions, and custody of assets are segregated activities. Effect: Due to the absence of segregation of duties, the level of risk that errors or irregularities, material in relation to the financial statements, may occur and not be detected within a timely period by the employees, in the normal course of performing their assigned functions, has not been reduced to a relatively low level.

Corrective Action Plan

School District No. 27-0595, North Bend, Nebraska, respectfully submits the following corrective action plan for the year ended August 31, 2022. Name and address of independent public accounting firm: Romans, Wiemer & Associates, Certified Public Accountants, P.C., 1910 N Lincoln Ave, York, NE 68467 Audit Period: September 1, 2021 through August 31, 2022 The findings from the November 3, 2022 schedule of findings and questioned cost are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS ? FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS 2022-001 Internal Control Structure Design Recommendation: While considering the cost of any benefits derived, activities should be segregated and handled by different employees. Action Taken: The cost of implementing a complete set of controls far outweighs the benefits derived by such. It is not financially feasible to have a complete set of controls. FINDINGS ? FEDERAL AWARD PROGRAM AUDIT Nebraska Department of Education 2022-002 Internal Control Structure Design Recommendation: While considering the cost of any benefits derived, activities should be segregated and handled by different employees. Action Taken: The cost of implementing a complete set of controls far outweighs the benefits derived by such. It is not financially feasible to have a complete set of controls.

Categories

Internal Control / Segregation of Duties Material Weakness School Nutrition Programs

Other Findings in this Audit

  • 21298 2022-002
    Material Weakness
  • 21299 2022-002
    Material Weakness
  • 597739 2022-002
    Material Weakness
  • 597740 2022-002
    Material Weakness
  • 597741 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $54,318
10.553 School Breakfast Program $45,975
84.358 Rural Education $41,217
10.555 National School Lunch Program $29,201
93.778 Medical Assistance Program $26,328
84.367 Improving Teacher Quality State Grants $11,366
84.048 Career and Technical Education -- Basic Grants to States $1,953
84.027 Special Education_grants to States $1,755
84.425 Education Stabilization Fund $1,325
84.173 Special Education_preschool Grants $750