FAC Explorer

Finding 33730 (2022-002)

Material Weakness
Requirement
ABEILN
Questioned Costs
-
Year
2022
Accepted
2023-04-25
Audit: 31843
Organization: Hudson Community School District (IA)
Auditor: Nolte Cornman & Johnson

AI Summary

  • Answer: There is a lack of proper segregation of duties, allowing one employee to control multiple incompatible areas.
  • Trend: This issue could lead to increased risk of errors or fraud in managing federal programs.
  • List: Recommended follow-up includes reviewing and redistributing responsibilities to ensure adequate checks and balances.

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, investments, payroll, transfers, financial reporting and computer systems. See finding 2022-001.

Corrective Action Plan

The District is continually reviewing internal controls and ways to better segregate duties. Changes are made whenever possible.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 33731 2022-002
    Material Weakness
  • 610172 2022-002
    Material Weakness
  • 610173 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $419,039
84.425 Education Stabilization Fund $124,235
84.010 Title I Grants to Local Educational Agencies $66,475
10.553 School Breakfast Program $33,520
84.367 Improving Teacher Quality State Grants $13,588
84.048 Career and Technical Education -- Basic Grants to States $11,579
84.424 Student Support and Academic Enrichment Program $10,000
84.027 Special Education_grants to States $4,806
10.649 Pandemic Ebt Administrative Costs $614