Finding 264815 (2022-004)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-03-22
Audit: 262547
Organization: Elysian School (MT)

AI Summary

  • Core Issue: There is insufficient segregation of duties among staff, increasing the risk of mishandled transactions.
  • Impacted Requirements: Proper segregation of duties is essential for ensuring transactions are managed appropriately.
  • Recommended Follow-Up: Implement separation of duties where possible and establish alternative controls, with support from the governing board.

Finding Text

SEGREGATION OF DUTIES Criteria: Duties should be segregated to provide reasonable assurance that transactions are handled appropriately. Condition: There is a lack of segregation of duties among personnel. Effect: Transactions could be mishandled. Cause: There are a limited number of personnel for certain functions. Recommendation: The duties should be separated as much as possible, and alternative controls should be used to compensate for lack of separation. The governing board should provide some of these controls. Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.

Corrective Action Plan

SEGREGATION OF DUTIES Name of Contact Person: Laurie Hickethier Corrective Action: Elysian School has numerous compensating controls in place to help prevent mistakes or fraud. The District could always do more to segregate duties, but this would require additional personnel. The District believes the costs of the additional personnel would outweigh the benefits to provide perfect segregation of duties. Many steps have been recommended in the past by auditors and all those steps have been taken to ensure proper segregation of duties with our current personnel. Proposed Completion Date: Immediately

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $356,742
10.555 National School Lunch Program $244,858
84.010 Title I Grants to Local Educational Agencies $96,354
84.358 Rural Education $0
10.559 Summer Food Service Program for Children $0