FAC Explorer

Finding 35246 (2022-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-04-05
Audit: 24136
Organization: Durand Community Unit School District No. 322 (IL)
Auditor: Benning Group LLC

AI Summary

  • Core Issue: The same individual is both the District bookkeeper and treasurer, which compromises internal controls.
  • Impacted Requirements: Segregation of duties is essential for effective oversight and financial integrity.
  • Recommended Follow-up: Implement a system where different individuals handle recording and oversight of financial transactions.

Finding Text

The function of the District treasurer is to review the accounting functions and provide a measure of oversight over daily procedures. The District bookkeeper also serves as the district treasurer. Segregation of duties essential for proper internal control over financial transactions is compromised when the same person functions in the capacity of both the person responsible for recording transactions and the person responsible for oversight of the financial procedures.

Corrective Action Plan

The district will continue to have a second individual review all monthly bank statements, reconciliations, and treasurer's reports. The district will designate someone besides the Treasurer to review accounts payable checks prior to mailing them and stamp them with the Superintendent's signature so there will be two signatures required on all accounts payable checks. See full Corrective Action Plan on district letterhead.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund Esser II $235,894
84.425 Education Stabilization Fund Esser III $155,801
10.555 National School Lunch Program $154,611
84.027 Special Education_grants to States $99,552
84.010 Title I Grants to Local Educational Agencies $73,156
32.009 Emergency Connectivity Fund Program $59,725
84.358 Rural Education $38,285
93.778 Medical Assistance Program $24,333
10.559 Summer Food Service Program for Children $15,914
84.367 Improving Teacher Quality State Grants $15,840
10.555 Non-Cash Food Commodity $13,448
84.173 Special Education_preschool Grants $11,598
84.424 Student Support and Academic Enrichment Program $6,586
10.555 National School Lunch Program Crrsa Child Nutrition $1,284
84.173 Special Education_preschool Grants Arp Idea Pre-K $892
10.649 Pandemic Ebt Administrative Costs $614
84.048 Career and Technical Education -- Basic Grants to States $395