Finding 26161 (2022-002)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-01-24

AI Summary

  • Core Issue: There is a risk of material misstatements in the District's annual financial statements due to inadequate internal controls.
  • Impacted Requirements: The District must ensure compliance with GAAP by establishing effective internal controls for financial reporting.
  • Recommended Follow-Up: Evaluate internal staff capabilities and consider implementing a control policy; provide management with training on key disclosures.

Finding Text

Significant Deficiency ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: Management is responsible for establishing internal controls to assure the District?s annual financial reporting is in accordance with GAAP. Condition: The potential exists that a material misstatement of the annual financial statements could occur and not be prevented or detected by the District?s internal controls. Effect: The District engages the audit firm to prepare drafts of its annual financial statements and related footnote disclosures in accordance with GAAP based on information and trial balances provided by management. Cause: The District?s staff does not possess the technical expertise, or the time required to draft the year end external financial statements. Recommendation: The District should continue to evaluate its internal staff and expertise to determine if an internal control policy over the annual financial reporting is beneficial. Management should review key disclosures in a checklist and receive additional education.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 26158 2022-001
    Significant Deficiency Repeat
  • 26159 2022-002
    Significant Deficiency Repeat
  • 26160 2022-001
    Significant Deficiency Repeat
  • 26162 2022-001
    Significant Deficiency Repeat
  • 26163 2022-002
    Significant Deficiency Repeat
  • 26164 2022-001
    Significant Deficiency Repeat
  • 26165 2022-002
    Significant Deficiency Repeat
  • 26166 2022-001
    Significant Deficiency Repeat
  • 26167 2022-002
    Significant Deficiency Repeat
  • 26168 2022-001
    Significant Deficiency Repeat
  • 26169 2022-002
    Significant Deficiency Repeat
  • 26170 2022-001
    Significant Deficiency Repeat
  • 26171 2022-002
    Significant Deficiency Repeat
  • 602600 2022-001
    Significant Deficiency Repeat
  • 602601 2022-002
    Significant Deficiency Repeat
  • 602602 2022-001
    Significant Deficiency Repeat
  • 602603 2022-002
    Significant Deficiency Repeat
  • 602604 2022-001
    Significant Deficiency Repeat
  • 602605 2022-002
    Significant Deficiency Repeat
  • 602606 2022-001
    Significant Deficiency Repeat
  • 602607 2022-002
    Significant Deficiency Repeat
  • 602608 2022-001
    Significant Deficiency Repeat
  • 602609 2022-002
    Significant Deficiency Repeat
  • 602610 2022-001
    Significant Deficiency Repeat
  • 602611 2022-002
    Significant Deficiency Repeat
  • 602612 2022-001
    Significant Deficiency Repeat
  • 602613 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $1.37M
10.555 National School Lunch Program $888,844
84.041 Impact Aid $834,706
84.010 Title I Grants to Local Educational Agencies $671,331
84.027 Special Education_grants to States $539,785
10.553 School Breakfast Program $331,000
93.778 Medical Assistance Program $324,991
84.060 Indian Education_grants to Local Educational Agencies $114,207
84.367 Improving Teacher Quality State Grants $84,331
10.665 Schools and Roads - Grants to States $68,551
84.424 Student Support and Academic Enrichment Program $49,560
84.358 Rural Education $46,233
21.027 Coronavirus State and Local Fiscal Recovery Funds $33,120
84.173 Special Education_preschool Grants $23,344
84.048 Career and Technical Education -- Basic Grants to States $22,417