Finding 375776 (2022-003)

Material Weakness
Requirement
ABFL
Questioned Costs
-
Year
2022
Accepted
2024-03-13

AI Summary

  • Core Issue: One employee has too much control over critical areas, risking incompatible duties.
  • Impacted Requirements: This affects compliance with internal control standards for major federal programs.
  • Recommended Follow-Up: Implement proper segregation of duties to enhance oversight and reduce risk.

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, manual journal entries and computers systems. See finding 2022-001.

Corrective Action Plan

1. Cash: Business Office Secretary counts the money, it is deposited by Superintendent or Business Office Secretary. The School Business Official receipts General, PPEL, PERL & SAVE Fund revenues. Hot Lunch & Activity Fund revenues are receipted in by Business Office Secretary. 2. Receipts: The Business Office Secretary, building secretaries and food service director all deposit money into family accounts for hot lunch. Receipts are entered and posted by Business Office Secretary and the account is reconciled by School Business Official for hot lunch. Activity deposits are counted by building secretaries or sponsor and a receipt ticket is written up – it is then given to Business Office Secretary to count again before depositing it. School Business Official reconciles the activity account. When cash/checks are brought in, the student is given a receipt for anything other than hot lunch or tee shirt orders. 3. Manual Journal Entries: Manual journal entries are made monthly for the monthly entries to move funds to the partial self-funding account and the interest accounts. Also, fiscal year end manual entries are made. The Superintendent is given a monthly report with all the manual journal entries made that month, and he reviews and signs off on the report. 4. Computer Systems: Both Business Office Secretary and School Business Official have access to all modules of the accounting software and are able to review any tasks completed. We will continue to review our internal controls to obtain the maximum internal control possible under the circumstances.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 375777 2022-003
    Material Weakness
  • 375778 2022-003
    Material Weakness
  • 952218 2022-003
    Material Weakness
  • 952219 2022-003
    Material Weakness
  • 952220 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $457,521
10.555 National School Lunch Program $296,738
10.553 School Breakfast Program $85,979
84.010 Title I Grants to Local Educational Agencies $71,024
84.358 Rural Education $40,237
84.048 Career and Technical Education -- Basic Grants to States $14,722
84.367 Improving Teacher Quality State Grants $11,276
84.424 Student Support and Academic Enrichment Program $10,000
84.027 Special Education_grants to States $3,526
10.649 Pandemic Ebt Administrative Costs $614