FAC Explorer

Finding 369645 (2022-005)

Material Weakness
Requirement
ABEILN
Questioned Costs
-
Year
2022
Accepted
2024-02-19
Audit: 291025
Organization: Fremont-Mills Community School District (IA)
Auditor: Nolte Cornman & Johnson PC

AI Summary

  • Core Issue: One employee has too much control over multiple financial areas, increasing the risk of errors or fraud.
  • Impacted Requirements: This violates the principle of segregation of duties, which is crucial for internal controls.
  • Recommended Follow-Up: Review and adjust responsibilities to ensure that no single employee manages 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 one individual has control over portions of one or more of the following areas for the District relating to major federal programs; cash, receipts, disbursements, payroll, financial reporting, computer systems, school lunch program and journal entries. See finding 2022-001.

Corrective Action Plan

Compensating controls to address the segregation of duties internal control deficiency due to limited staff size have been established in these areas to obtain the maximum internal control possible under current circumstances. Additionally, an operational sharing agreement for Business Manager Services was entered into with a neighboring district for fiscal years 2023 and 2024 to further address the segregation of duties internal control weakness.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 369646 2022-006
    Material Weakness
  • 369647 2022-007
    Material Weakness
  • 369648 2022-008
    Significant Deficiency
  • 369649 2022-005
    Material Weakness
  • 369650 2022-006
    Material Weakness
  • 369651 2022-007
    Material Weakness
  • 369652 2022-008
    Significant Deficiency
  • 369653 2022-005
    Material Weakness
  • 369654 2022-006
    Material Weakness
  • 369655 2022-007
    Material Weakness
  • 369656 2022-008
    Significant Deficiency
  • 946087 2022-005
    Material Weakness
  • 946088 2022-006
    Material Weakness
  • 946089 2022-007
    Material Weakness
  • 946090 2022-008
    Significant Deficiency
  • 946091 2022-005
    Material Weakness
  • 946092 2022-006
    Material Weakness
  • 946093 2022-007
    Material Weakness
  • 946094 2022-008
    Significant Deficiency
  • 946095 2022-005
    Material Weakness
  • 946096 2022-006
    Material Weakness
  • 946097 2022-007
    Material Weakness
  • 946098 2022-008
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $256,412
84.425 Education Stabilization Fund $100,734
84.010 Title I Grants to Local Educational Agencies $65,371
10.553 School Breakfast Program $61,595
84.358 Rural Education $46,141
84.424 Student Support and Academic Enrichment Program $17,782
10.559 Summer Food Service Program for Children $17,664
84.048 Career and Technical Education -- Basic Grants to States $8,004
84.367 Improving Teacher Quality State Grants $7,613
84.027 Special Education_grants to States $3,188
10.649 Pandemic Ebt Administrative Costs $614