Finding #2023-001 – Material Audit Adjustments
Condition: The auditors proposed audit adjustments that, if not made, would have resulted in the financial statements being materially misstated.
Effect: The District’s system of internal control may not prevent, detect, or correct misstatements in the financial statements. Financial reports generated by the accounting system may not provide an accurate reflection of the District’s financial position or activities. Not reconciling accounts on a timely basis could lead to errors or other problems not being recognized and resolved.
Cause: Financial information was not recorded in a timely manner and material adjustments were needed in order to correct various transactions
Criteria: Proper financial closing and year-end reconciliation procedures should be in place to identify and adjust the financial records to ensure the financial statements are fairly stated.
Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded and reconciled in a timely manner.
Response: The District acknowledges their responsibility for the financial statements and recording of the current year activity. Going forward, the District will verify that all activity is completely and accurately recorded in the financial records and reflected on the financial statements. Marshall School District's Corrective Action Plan:
School Business Manager Kristin Wilkinson will engage in the following tasks to better understand and put processes in place to address the finding: Meet with experienced School Business Managers Wendy Brockert and/or Tim Stellmacher in regards to ensuring account balances are properly recorded and reconciled in a timely manner. When Ongoing. Completed by 6/30/2024. Attend WASBO University class through Wisconsin Association of School Business Officials, specifically Internal Controls for the School Business Office. When Ongoing. This specific course completed 3/19/2024. Complete one full year as School Business Manager at Marshall Public Schools (first position in this role in any district) learning about the role, structures and processes that are in place, need to be put in place, and need to be refined. When May 2, 2024. Implement procedures to ensure account balances are properly recorded and reconciled in a timely manner. When 6/30/2024.