Finding 375424 (2023-002)

Material Weakness Repeat Finding
Requirement
ABEGLN
Questioned Costs
-
Year
2023
Accepted
2024-03-11

AI Summary

  • Core Issue: Bank reconciliations were completed but not compared to the general ledger monthly, leading to unresolved variances.
  • Impacted Requirements: Timely and accurate reconciliations are essential for reliable cash reporting and financial confidence.
  • Recommended Follow-up: Implement procedures to ensure monthly comparisons of bank reconciliations to the general ledger to address variances promptly.

Finding Text

Condition: During our audit, we noted the bank reconciliations for the District’s checking, savings and ISJIT accounts were completed but not compared to the general ledger balance on a monthly basis to investigate and resolve any variances in a timely manner. Criteria: When performed timely and accurately bank reconciliations provide support for the cash position of the District and allow users a higher degree of confidence in the amount of cash reflected on the financial statements. Cause: It does not appear the District has established procedures to require bank reconciliations for checking, savings and ISJIT accounts be reconciled to the general ledger each month. Effect: Inadequate performance of bank reconciliations could adversely affect the District’s ability to prevent or detect and correct misstatements, errors, or misappropriation on a timely basis by employees in the normal course of performing their assigned functions. Recommendation: The District should ensure bank reconciliations are being prepared and compared to the general ledger balance each month to investigate and resolve any variances in a timely manner. Repeat Finding: Yes. Views of Responsible Officials and Planned Corrective Actions: In the future, we will perform bank reconciliations and compare to the general ledger each month.

Corrective Action Plan

CORRECTIVE ACTION PLAN February 8, 2024 To: U.S. Department of Education North Fayette Valley Community School District respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Hacker, Nelson & Co., CPAs 123 W. Water Street Decorah, IA 52101 Audit period: Year ended June 30, 2023. The findings from the June 30, 2023 schedule of findings and questioned costs is discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS - FEDERAL AWARDS PROGRAM AUDIT U.S. Department of Education: 2023: Education Stabilization Fund (ESF): Federal Assistance Listing Number 84.425B: Discretionary Grants: Rethink K-12 Education Models (ARP) Federal Assistance Listing Number 84.425C: COVID-19 Governor’s Emergency Education Relief Fund (GEER II) Federal Assistance Listing Number 84.425U: American Rescue Plan - Elementary and Secondary School Emergency Relief (ARP ESSER III) Federal Assistance Listing Number 84.010: Title I Grants to Local Education Agencies Page 2 FINDINGS - FEDERAL AWARDS PROGRAM AUDIT (Continued) Material Weakness: See Finding 2023-001 Recommendation: The District should review the operating procedures of the District offices to obtain the maximum internal control possible under the circumstances utilizing currently available staff. While we do recognize that the District is not large enough to permit a segregation of duties for effective internal controls, we believe it is important the Board be aware that this condition does exist. Action Taken: Management is cognizant of this limitation and will implement additional procedures where possible. Anticipated Date of Completion: June 30, 2024 Material Weakness: See Finding 2023-002 Recommendation: The District should ensure bank reconciliations are being prepared and compared to the general ledger balance each month to investigate and resolve any variances in a timely manner. Action Taken: In the future, we will perform bank reconciliations and compare to the general ledger each month. Anticipated Date of Completion: June 30, 2024 If the U.S. Department of Education has questions regarding this plan, please call Kassie Stansbery, Business Manager/Treasurer, at 563-422-3851. Sincerely yours, Kassie Stansbery North Fayette Valley Community School District Business Manager/Treasurer cc: Neil W. Schraeder, CPA

Categories

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Other Findings in this Audit

  • 375423 2023-001
    Material Weakness Repeat
  • 375425 2023-001
    Material Weakness Repeat
  • 375426 2023-002
    Material Weakness Repeat
  • 375427 2023-001
    Material Weakness Repeat
  • 375428 2023-002
    Material Weakness Repeat
  • 375429 2023-001
    Material Weakness Repeat
  • 375430 2023-002
    Material Weakness Repeat
  • 951865 2023-001
    Material Weakness Repeat
  • 951866 2023-002
    Material Weakness Repeat
  • 951867 2023-001
    Material Weakness Repeat
  • 951868 2023-002
    Material Weakness Repeat
  • 951869 2023-001
    Material Weakness Repeat
  • 951870 2023-002
    Material Weakness Repeat
  • 951871 2023-001
    Material Weakness Repeat
  • 951872 2023-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $472,289
84.425 Education Stabilization Fund $400,617
84.010 Title I Grants to Local Educational Agencies $188,039
10.553 School Breakfast Program $66,036
84.287 Twenty-First Century Community Learning Centers $50,000
84.027 Special Education_grants to States $49,115
84.367 Improving Teacher Quality State Grants $38,184
84.424 Student Support and Academic Enrichment Program $12,510
84.048 Career and Technical Education -- Basic Grants to States $12,154