FAC Explorer

Finding 3538 (2023-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2023-12-06
Audit: 5553
Organization: Community Unit School District #4 (IL)
Auditor: Gray Hunter Stenn LLP

AI Summary

  • Core Issue: The school district lacks adequate segregation of duties, increasing the risk of errors and fraud.
  • Impacted Requirements: Limited staff means one bookkeeper handles multiple roles, such as preparing checks and reconciling bank statements.
  • Recommended Follow-Up: The superintendent and board should closely supervise accounting processes to catch any potential issues early.

Finding Text

THE SCHOOL DISTRICT'S OFFICE DOES NOT HAVE AN ADEQUATE SEGREGATION OF DUTIES IN CERTAIN AREAS CONSISTENT WITH CONTROL OBJECTIVES. THE LIMITED NUMBER OF INDIVIDUALS TO SHARE RESPONSIBILITIES FOR ACCESS TO ASSETS AND ACCOUNTING RECORDS MAKES IT DIFFICULT TO MITIGATE THE CONTROL WEAKNESS. THE BOOKKEEPER IS INVOLVED IN MANY ASPECTS OF A TRANSACTION. FOR EXAMPLE, IN CASH DISBURSEMENTS THE BOOKKEEPER PREPARES THE CHECK, RECORDS THE TRANSACTIONS, AND PREPARES THE BANK RECONCILIATION. THE BOOKKEEPER PERFORMED MOST OF THE ACCOUNTING FUNCTIONS, RESULTING IN A LACK OF SEGREGATION OF DUTIES. THE CAUSE OF THE FINDING IS LIMITED ACCOUNTING STAFF TO SEPARATE THE DIFFERENT ACCOUNTING FUNCTIONS. WE RECOMMND THE SUPERINTENDENT AND THE BOARD OF EDUCATION CLOSELY SUPERVISE AND REVIEW ACCOUNTING INFORMATION AS THE BEST WAY TO PREVENT OR DETECT ERRORS OR IRREGULARITIES. MANAGEMENT AGREES WITH THE FINDING AND WILL CONTINUE OVERSIGHT RESPONSIBILITY.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 3524 2023-001
    Significant Deficiency Repeat
  • 3525 2023-001
    Significant Deficiency Repeat
  • 3526 2023-001
    Significant Deficiency Repeat
  • 3527 2023-001
    Significant Deficiency Repeat
  • 3528 2023-001
    Significant Deficiency Repeat
  • 3529 2023-001
    Significant Deficiency Repeat
  • 3530 2023-001
    Significant Deficiency Repeat
  • 3531 2023-001
    Significant Deficiency Repeat
  • 3532 2023-001
    Significant Deficiency Repeat
  • 3533 2023-001
    Significant Deficiency Repeat
  • 3534 2023-001
    Significant Deficiency Repeat
  • 3535 2023-001
    Significant Deficiency Repeat
  • 3536 2023-001
    Significant Deficiency Repeat
  • 3537 2023-001
    Significant Deficiency Repeat
  • 3539 2023-001
    Significant Deficiency Repeat
  • 3540 2023-001
    Significant Deficiency Repeat
  • 3541 2023-001
    Significant Deficiency Repeat
  • 3542 2023-001
    Significant Deficiency Repeat
  • 579966 2023-001
    Significant Deficiency Repeat
  • 579967 2023-001
    Significant Deficiency Repeat
  • 579968 2023-001
    Significant Deficiency Repeat
  • 579969 2023-001
    Significant Deficiency Repeat
  • 579970 2023-001
    Significant Deficiency Repeat
  • 579971 2023-001
    Significant Deficiency Repeat
  • 579972 2023-001
    Significant Deficiency Repeat
  • 579973 2023-001
    Significant Deficiency Repeat
  • 579974 2023-001
    Significant Deficiency Repeat
  • 579975 2023-001
    Significant Deficiency Repeat
  • 579976 2023-001
    Significant Deficiency Repeat
  • 579977 2023-001
    Significant Deficiency Repeat
  • 579978 2023-001
    Significant Deficiency Repeat
  • 579979 2023-001
    Significant Deficiency Repeat
  • 579980 2023-001
    Significant Deficiency Repeat
  • 579981 2023-001
    Significant Deficiency Repeat
  • 579982 2023-001
    Significant Deficiency Repeat
  • 579983 2023-001
    Significant Deficiency Repeat
  • 579984 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Elementary and Secondary School Emergency Relief Grant III Covid 19 $469,509
10.555 National School Lunch $203,496
84.173 Federal Special Ed Idea Arp $97,601
84.425 Elementary and Secondary School Emergency Relief Grant II Covid 19 $89,666
84.010 Title 1 Low Income $83,733
84.367 Title II $37,690
84.425 Elementary and Secondary School Emergency Relief Grant Id Covid 19 $32,410
84.010 Title 1 School Improvement $28,324
10.553 National School Breakfast $27,892
10.555 Commodities $21,481
93.778 Medical Assistance Program $16,623
84.027 Federal Special Ed Idea Preschool $7,832
84.425 Elementary and Secondary School Emergency Relief Grant Ht Covid 19 $7,249
84.425 Elementary and Secondary School Emergency Relief Grant Ps Covid 19 $3,204