FAC Explorer

Finding 393961 (2022-002)

Material Weakness Repeat Finding
Requirement
ABEILN
Questioned Costs
-
Year
2022
Accepted
2024-04-22
Audit: 304144
Organization: Odebolt Arther Battle Greek Ida Grove Community School District (IA)
Auditor: Nolte Cornman & Johnson PC

AI Summary

  • Core Issue: One employee has too much control over multiple financial areas, increasing the risk of errors or fraud.
  • Impacted Requirements: Segregation of duties is not being properly enforced, which is critical for internal controls.
  • Recommended Follow-Up: Review and redistribute responsibilities among staff to ensure no single employee handles 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 federal programs; cash, investments, receipts, wire transfers, payroll, computer systems, financial reporting, school lunch program and journal entries. See finding 2022-001.

Corrective Action Plan

The District continues to review procedures to segregate duties to the maximum level possible with the current staff. Procedures are in place to assure that every transaction is overseen by more than one person, including handling of cash transactions, deposits, receipt recording, payroll processing, computerized accounting functions, handling school lunch program funds, financial reporting, and calculating and posting journal entries. The District will review these procedures monthly and make changes as necessary.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 393962 2022-002
    Material Weakness Repeat
  • 393963 2022-002
    Material Weakness Repeat
  • 970403 2022-002
    Material Weakness Repeat
  • 970404 2022-002
    Material Weakness Repeat
  • 970405 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $597,930
84.425 Education Stabilization Fund $281,172
84.010 Title I Grants to Local Educational Agencies $178,720
10.553 School Breakfast Program $126,663
84.367 Improving Teacher Quality State Grants $23,855
84.424 Student Support and Academic Enrichment Program $12,000
84.048 Career and Technical Education -- Basic Grants to States $9,527
10.559 Summer Food Service Program for Children $7,438
84.027 Special Education_grants to States $7,153
10.649 Pandemic Ebt Administrative Costs $614