Finding 392281 (2023-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-04-04

AI Summary

  • Core Issue: The District is using outdated accounting software that allows for errors, such as unbalanced funds and incorrect trial balances.
  • Impacted Requirements: The software fails to prevent one-sided entries and does not properly close fiscal years, leading to inaccuracies in financial reporting.
  • Recommended Follow-Up: The District should consider upgrading to a new accounting software or ensure current software is properly managed to maintain accurate financial statements.

Finding Text

Accounting Software Condition: During audit fieldwork, our testing we noted the District is using an accounting software package that is outdated and provides minimal support for issues that arise. The software allowed for funds to be out of balance and Trial Balances that did not match the general ledger, and journal entries to be posed to prior fiscal years. Criteria: A good software system should restricted the capability of posting one-sided entries and should close each fiscal year to not allow for journal entries to be posted in prior fiscal years. Cause: Year-end entries were required in order to balance funds and accurately present the District’s financial statements. Effect: The District’s financial statements did not represent the actual activity of the fiscal year audited at audit fieldwork. Recommendation: We recommend the District review the current accounting software package and investigate the purchase of a new software. If the District retains the software package, we recommend the District ensure funds are balanced and the general ledger matches the trial balances provided at audit fieldwork.

Corrective Action Plan

The Chief School Business Official, along with staff, will review other software packages for pricing and practicality for the District.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 392282 2023-002
    Significant Deficiency
  • 968723 2023-001
    Material Weakness
  • 968724 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $133,602
84.027 Special Education_grants to States $94,533
93.778 Medical Assistance Program $74,311
10.555 National School Lunch Program $61,899
84.367 Improving Teacher Quality State Grants $49,907
84.173 Special Education_preschool Grants $43,442
84.365 English Language Acquisition State Grants $33,087
10.553 School Breakfast Program $20,108
84.010 Title I Grants to Local Educational Agencies $14,296
84.173 Special Education_grants to States $10,587
84.424 Student Support and Academic Enrichment Program $8,470