FAC Explorer

Finding 395762 (2022-002)

Material Weakness Repeat Finding
Requirement
ABEILN
Questioned Costs
-
Year
2022
Accepted
2024-05-02
Audit: 305393
Organization: Northwood-Kensett Community School District (IA)
Auditor: Nolte Cornman & Johnson PC

AI Summary

  • Core Issue: One employee has too much control over multiple financial areas, risking incompatible duties.
  • Impacted Requirements: This violates the principle of segregation of duties, essential for effective internal controls.
  • Recommended Follow-Up: Review and redistribute responsibilities to ensure no single employee manages conflicting tasks.

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, disbursements, inventories, capital assets, wire transfers, manual journal entries, payroll, financial reporting, computer systems and school lunch program. See finding 2022-001.

Corrective Action Plan

New HR Director, Brooke Olson hired 8/13/2022 now reviews all checks with invoices after Board has approved expenses. In addition, she reviews all bank statements along with copies of checks provided in bank statement. She does not have check writing capabilities. • Deposit Specialist from NSB Bank does check reconciliation report each month • District is going with cashless gate system through Varsity Bound • Board is currently approving a Budget Review Committee Policy

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 395763 2022-002
    Material Weakness Repeat
  • 972204 2022-002
    Material Weakness Repeat
  • 972205 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $337,580
10.555 National School Lunch Program $335,044
84.010 Title I Grants to Local Educational Agencies $86,179
10.553 School Breakfast Program $49,966
84.358 Rural Education $30,815
84.048 Career and Technical Education -- Basic Grants to States $18,274
84.367 Improving Teacher Quality State Grants $15,091
84.424 Student Support and Academic Enrichment Program $10,000
84.027 Special Education_grants to States $3,647