FAC Explorer

Finding 33677 (2022-002)

Material Weakness
Requirement
ABEILN
Questioned Costs
-
Year
2022
Accepted
2023-08-07
Audit: 29359
Organization: Mid-Prairie Community School District (IA)
Auditor: Nolte Cornman & Johnson PC

AI Summary

  • Core Issue: One employee has too much control over critical financial areas, risking incompatible duties.
  • Impacted Requirements: This affects compliance with internal control standards for major federal programs.
  • Recommended Follow-Up: Implement proper segregation of duties to enhance internal controls and reduce risk.

Finding Text

One important aspect of the internal control structure is the segregation of duties among employees to prevent an individual employee from handling duties which are incompatible. We noted one individual has control over portions of one or more of the following areas for the District relating to major federal programs; cash, inventories, receipts, payroll, disbursements, financial reporting, computer systems and manual journal entries. See finding 2022 001.

Corrective Action Plan

The District has implemented additional controls such as mandatory vacations for accounting staff and the engagement of an independent accounting professional who performs unannounced reviews of the current activities and processes cited above, as well as reviewing the workflow and work area, including electronic and paper files and correspondence of each employee while on their mandatory vacation. Written reports are provided to the Superintendent after each review visit and added to the employee?s personnel file. The District will continue to review internal controls and explore alternatives to improve segregation of duties.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 33678 2022-002
    Material Weakness
  • 33679 2022-002
    Material Weakness Repeat
  • 33680 2022-002
    Material Weakness Repeat
  • 610119 2022-002
    Material Weakness
  • 610120 2022-002
    Material Weakness
  • 610121 2022-002
    Material Weakness Repeat
  • 610122 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $806,691
84.010 Title I Grants to Local Educational Agencies $294,219
10.553 School Breakfast Program $109,902
84.367 Improving Teacher Quality State Grants $79,240
84.048 Career and Technical Education -- Basic Grants to States $29,349
84.424 Student Support and Academic Enrichment Program $17,895
84.425 Education Stabilization Fund $12,686
84.027 Special Education_grants to States $9,006
10.649 Pandemic Ebt Administrative Costs $614