FAC Explorer

Finding 32915 (2022-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2022-12-12
Audit: 24330
Organization: Brown County Community Unit School District #1 (IL)
Auditor: Zumbahlen Eyth Surratt Foote and Flynn LTD

AI Summary

  • Core Issue: The accounting function lacks adequate segregation of duties due to being managed by a limited number of individuals.
  • Impacted Requirements: The District's internal controls are weakened because one bookkeeper handles most accounting tasks.
  • Recommended Follow-Up: The District should implement duty segregation where feasible, and the Board must closely review all financial information.

Finding Text

Finding Number: 2022-003. Criteria or specific requirement: The accounting function should be controlled by a sufficient number of individuals in order to have adequate segregation of duties. Condition: The District's accounting function is controlled by a limited number of individuals resulting in inadequate segregation of duties. Context: The District's accounting function is mainly controlled by one bookkeeper. Effect: The limited number of personnel hinders the overall effectiveness of internal controls. Cause: The District is unable to hire an adequate number of staff to increase the effectiveness of internal controls. Recommendation: The District should segregate duties where possible. The Board should be aware of this problem and closely review and approve all financial-related information. Management's Response: The District has reviewed and continues to review its financial policies and procedures to better segregate duties where possible. The Superintendent continually reminds the Board about their responsibility in regards to reviewing and approving financial items and asking questions. It is not cost-feasible to hire additional personnel.

Corrective Action Plan

FINDINGS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT Material Weakness U.S. DEPARTMENT OF EDUCATION ? Education Stabilization Fund Under the Coronavirus Aid, Relief and Economic Security Act ? CFDA No. 84.425D Finding No.: 2022-003 Condition: The District?s accounting function is controlled by a limited number of individuals resulting in the inadequate segregation of duties. Recommendation: The District should segregate duties where possible. The Board should be aware of this problem and closely review and approve all financial related information. Action Taken: The District concurs with the recommendation. The District has reviewed and continues to review its financial policies and procedures to better segregate duties where possible. The Superintendent continually reminds the Board of their responsibility in regards to reviewing and approving financial items and asking questions. It is not cost feasible to hire additional personnel. Anticipated Date of Completion: Ongoing

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 609357 2022-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $840,971
84.027 Special Education_grants to States $293,635
84.010 Title I Grants to Local Educational Agencies $157,937
10.559 Summer Food Service Program for Children $50,382
10.553 School Breakfast Program $44,367
10.555 National School Lunch Program $27,569
84.367 Improving Teacher Quality State Grants $21,917
93.778 Medical Assistance Program $17,759
10.560 State Administrative Expenses for Child Nutrition $17,525
84.173 Special Education_preschool Grants $10,591
84.424 Student Support and Academic Enrichment Program $10,162
10.649 Pandemic Ebt Administrative Costs $614