FAC Explorer

Finding 3667 (2022-002)

Material Weakness Repeat Finding
Requirement
ABEILN
Questioned Costs
-
Year
2022
Accepted
2023-12-07
Audit: 5729
Organization: Dike-New Hartford Community School District (IA)
Auditor: Nolte Cornman & Johnson PC

AI Summary

  • Core Issue: Two employees have overlapping control over critical financial areas, increasing the risk of errors or fraud.
  • Impacted Requirements: This violates the principle of segregation of duties, which is essential for effective internal controls.
  • Recommended Follow-Up: Review and reassign responsibilities to ensure that no single employee has control over incompatible duties.

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 two individuals have control over portions of one or more of the following areas for the District relating to major federal programs; cash, investments, inventories, receipts, disbursements, capital assets, payroll, computer systems, journal entries and the school lunch program. See finding 2022-001.

Corrective Action Plan

We will continue to monitor our internal control procedures and make changes where possible.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 3668 2022-002
    Material Weakness Repeat
  • 3669 2022-002
    Material Weakness Repeat
  • 580109 2022-002
    Material Weakness Repeat
  • 580110 2022-002
    Material Weakness Repeat
  • 580111 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $588,301
84.425 Education Stabilization Fund $253,988
10.553 School Breakfast Program $100,850
10.559 Summer Food Service Program for Children $79,007
84.010 Title I Grants to Local Educational Agencies $69,770
84.367 Improving Teacher Quality State Grants $14,175
84.424 Student Support and Academic Enrichment Program $10,000
84.027 Special Education_grants to States $5,843
84.048 Career and Technical Education -- Basic Grants to States $2,105
10.649 Pandemic Ebt Administrative Costs $614