FAC Explorer

Finding 2131 (2023-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2023-11-20
Audit: 3696
Organization: Unified School District #349 Stafford, Ks (KS)
Auditor: Vonfeldt Bauer & Vonfeldt Chtd

AI Summary

  • Core Issue: There is a lack of segregation of duties in the accounting function due to a small number of employees.
  • Impacted Requirements: Proper segregation of duties is necessary to ensure financial statements are accurate and free from material misstatements.
  • Recommended Follow-Up: The Superintendent and Board of Education should consider this issue during their review of financial activities and reports.

Finding Text

Finding 2023-1 - Lack of Segregation of Duties CONDITION: Lack of segregation of duties due to the small number of employees involved in the accounting function of the District. CRITERIA: Segregation of duties should be in place to provide reasonable assurance that the financial statement is fairly stated and free of material misstatements. CAUSE: Small number of employees in the accounting function makes proper segregation of duties impossible. POTENTIAL EFFECT OF CONDITION: Errors or irregularities could occur that would not be prevented or detected in a timely manner that would cause a misstatement of the financial statement that is more than inconsequential. RECOMMENDATION: To mitigate this deficiency we recommend that the Superintendent and Board of Education consider this condition while performing their monitoring and review of the financial statement activity and reports. CLIENT RESPONSE: The District is in agreement with this finding. The District's response is in the attached Corrective Action Plan.

Corrective Action Plan

Finding 2023-1 - Lack of Segregation of Duties The District understands that this is a significant deficiency but feels it is not cost-effective at this time to hire additional employees to properly segregate duties. We feel that the oversight performed by the Superintendent and Board of Education over the financial statement activity and reports of the District is adequate to help mitigate the lack of segregation of duties. We believe it would be inefficient and cost prohibitive to hire the additional employees needed to properly segregate duties so at this time we do not plan on making any changes. However, we will continue to monitor this situation and periodically determine if it is cost-effective for us to properly segregate duties.

Categories

Subrecipient Monitoring Internal Control / Segregation of Duties

Other Findings in this Audit

  • 2132 2023-001
    Significant Deficiency Repeat
  • 578573 2023-001
    Significant Deficiency Repeat
  • 578574 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $221,820
84.287 Twenty-First Century Community Learning Centers $166,320
10.555 National School Lunch Program $126,647
84.425 Education Stabilization Fund $124,570
84.010 Title I Grants to Local Educational Agencies $66,624
10.553 School Breakfast Program $33,859
10.558 Child and Adult Care Food Program $16,616
10.559 Summer Food Service Program for Children $15,552
84.424 Student Support and Academic Enrichment Program $13,387
84.358 Rural Education $10,998
84.367 Improving Teacher Quality State Grants $8,733
10.582 Fresh Fruit and Vegetable Program $7,195
84.048 Career and Technical Education -- Basic Grants to States $3,375