FAC Explorer

Finding 382382 (2022-002)

Material Weakness Repeat Finding
Requirement
ABFL
Questioned Costs
-
Year
2022
Accepted
2024-03-20
Audit: 296093
Organization: Belle Plaine Community School District (IA)
Auditor: Nolte Cornman & Johnson PC

AI Summary

  • Core Issue: One employee has too much control over critical financial areas, increasing the risk of errors or fraud.
  • Impacted Requirements: Segregation of duties is not being properly enforced, which is essential for internal controls.
  • Recommended Follow-Up: Reassess and redistribute responsibilities among staff to ensure proper segregation of 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, investments, receipts, disbursements, payroll, financial reporting, manual journal entries and the school lunch program. See finding 2022-001.

Corrective Action Plan

The District currently employs 2 people in the business office (this number includes the business manager). The District will review its established procedures and duty lists and modify them to include other District staff when dealing with receipts, disbursements, cash, mailings and financial reporting (Ex: maintenance/custodial staff making deposits and building secretaries preparing disbursements).

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 382383 2022-002
    Material Weakness Repeat
  • 958824 2022-002
    Material Weakness Repeat
  • 958825 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $370,143
10.555 National School Lunch Program $322,550
10.553 School Breakfast Program $91,630
84.010 Title I Grants to Local Educational Agencies $66,855
84.358 Rural Education $33,707
84.367 Improving Teacher Quality State Grants $13,460
10.579 Child Nutrition Discretionary Grants Limited Availability $11,702
84.424 Student Support and Academic Enrichment Program $10,000
84.027 Special Education_grants to States $3,451
84.048 Career and Technical Education -- Basic Grants to States $630