FAC Explorer

Finding 392594 (2022-002)

Material Weakness Repeat Finding
Requirement
ABEILN
Questioned Costs
-
Year
2022
Accepted
2024-04-08
Audit: 302884
Organization: Lenox 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: This violates the principle of segregation of duties necessary for effective internal controls.
  • Recommended Follow-Up: Review and redistribute responsibilities to ensure no single employee manages incompatible 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, inventories, receipts, disbursements, payroll, wire transfers, transfers, computer systems and manual journal entries. See finding 2022 001.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 392592 2022-002
    Material Weakness Repeat
  • 392593 2022-002
    Material Weakness Repeat
  • 969034 2022-002
    Material Weakness Repeat
  • 969035 2022-002
    Material Weakness Repeat
  • 969036 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $327,785
84.425 Education Stabilization Fund $242,887
84.010 Title I Grants to Local Educational Agencies $98,947
10.553 School Breakfast Program $73,138
84.358 Rural Education $39,388
84.367 Improving Teacher Quality State Grants $14,516
84.424 Student Support and Academic Enrichment Program $10,000
10.559 Summer Food Service Program for Children $6,738
84.027 Special Education_grants to States $3,401
84.048 Career and Technical Education -- Basic Grants to States $2,624
84.365 English Language Acquisition State Grants $1,665