FAC Explorer

Finding 26227 (2022-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2022-12-15
Audit: 22916
Organization: Unified School District No. 254 (KS)
Auditor: Vonfeldt Bauer & Vonfeldt Chtd

AI Summary

  • Core Issue: There is a significant deficiency due to a lack of segregation of duties in the accounting function, caused by 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

Significant Deficiency: Finding 2022-001 - 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 misstatement. 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 2022-001 - 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 no 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 Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 26228 2022-001
    Significant Deficiency Repeat
  • 26229 2022-001
    Significant Deficiency Repeat
  • 26230 2022-001
    Significant Deficiency Repeat
  • 602669 2022-001
    Significant Deficiency Repeat
  • 602670 2022-001
    Significant Deficiency Repeat
  • 602671 2022-001
    Significant Deficiency Repeat
  • 602672 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $241,926
10.555 National School Lunch Program $236,898
84.010 Title I Grants to Local Educational Agencies $102,868
10.553 School Breakfast Program $50,903
10.559 Summer Food Service Program for Children $45,142
97.039 Hazard Mitigation Grant $23,250
84.367 Improving Teacher Quality State Grants $21,801
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $19,582
10.582 Fresh Fruit and Vegetable Program $16,612
84.358 Rural Education $15,950
84.424 Student Support and Academic Enrichment Program $14,904
84.048 Career and Technical Education -- Basic Grants to States $13,227
10.575 Farm to School Grant Program $5,161
10.649 Pandemic Ebt Administrative Costs $614
10.560 State Administrative Expenses for Child Nutrition $316