FAC Explorer

Finding 398321 (2023-004)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-05-22
Audit: 306985
Organization: Fremont County School District No. 14 (WY)
Auditor: Summit West CPA Group PC

AI Summary

  • Core Issue: Insufficient number of employees handling accounting and bookkeeping duties at the start of the year led to inadequate segregation of duties.
  • Impacted Requirements: Proper segregation of duties is essential for safeguarding assets and ensuring accurate financial reporting.
  • Recommended Follow-Up: Monitor the effectiveness of new hires to ensure compliance with segregation of duties moving forward.

Finding Text

FINDING 2023-004 - SEGREGATION OF DUTIES Program information This finding applies to all federal awards. Repeat Finding from Prior Year Yes Condition The number of employees performing accounting and bookkeeping duties in the beginning of the year was not sufficient to provide an adequate segregation of duties. Criteria Circumstances permitting, accounting and bookkeeping duties should be assigned to different individuals to promote safeguarding of assets and accuracy of financial information. Context Noted throughout the finding. Cause The District has limited resources that minimize the possibility to segregate the functions within the business office and was in the process of hiring and filling positions to mitigate the associated risks. The positions were filled but during the beginning of the audit period there was a period when this risk was present. Effect Because of the limited number of individuals involved in the accounting and bookkeeping functions, there is a greater risk that assets will not be properly safeguarded and that errors in financial information will occur and not be detected in a timely manner. This was only applicable to the beginning of the audit period before hires were made. Questioned Costs Not applicable Sampling Method Not applicable Recommendation None at this time given adequate hires have been made. Response and Views of Responsible Officials See corrective action plan.

Corrective Action Plan

CORRECTIVE ACTION - FINDING 2023-004 - SEGREGATION OF DUTIES Anticipated Date of Completion: June 1, 2024 Name of Contact Person: Robin Vail, Business Manager Management Response: Management acknowledges the repeated finding concerning the segregation of duties within the accounting and bookkeeping functions at the beginning of the audit period. We recognize the importance of segregating these duties to safeguard assets and ensure the accuracy of financial information. While we faced limitations in resources during that period, we have since hired additional staff to mitigate this risk. Moving forward, we remain committed to maintaining an appropriate segregation of duties to strengthen internal controls and mitigate potential risks.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 398309 2023-002
    Material Weakness Repeat
  • 398310 2023-002
    Material Weakness Repeat
  • 398311 2023-002
    Material Weakness Repeat
  • 398312 2023-002
    Material Weakness Repeat
  • 398313 2023-002
    Material Weakness Repeat
  • 398314 2023-002
    Material Weakness Repeat
  • 398315 2023-003
    Material Weakness Repeat
  • 398316 2023-003
    Material Weakness Repeat
  • 398317 2023-003
    Material Weakness Repeat
  • 398318 2023-003
    Material Weakness Repeat
  • 398319 2023-003
    Material Weakness Repeat
  • 398320 2023-003
    Material Weakness Repeat
  • 398322 2023-004
    Material Weakness Repeat
  • 398323 2023-004
    Material Weakness Repeat
  • 398324 2023-004
    Material Weakness Repeat
  • 398325 2023-004
    Material Weakness Repeat
  • 398326 2023-004
    Material Weakness Repeat
  • 974751 2023-002
    Material Weakness Repeat
  • 974752 2023-002
    Material Weakness Repeat
  • 974753 2023-002
    Material Weakness Repeat
  • 974754 2023-002
    Material Weakness Repeat
  • 974755 2023-002
    Material Weakness Repeat
  • 974756 2023-002
    Material Weakness Repeat
  • 974757 2023-003
    Material Weakness Repeat
  • 974758 2023-003
    Material Weakness Repeat
  • 974759 2023-003
    Material Weakness Repeat
  • 974760 2023-003
    Material Weakness Repeat
  • 974761 2023-003
    Material Weakness Repeat
  • 974762 2023-003
    Material Weakness Repeat
  • 974763 2023-004
    Material Weakness Repeat
  • 974764 2023-004
    Material Weakness Repeat
  • 974765 2023-004
    Material Weakness Repeat
  • 974766 2023-004
    Material Weakness Repeat
  • 974767 2023-004
    Material Weakness Repeat
  • 974768 2023-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.041 Impact Aid $5.31M
84.010 Title I Grants to Local Educational Agencies $362,341
84.027 Special Education_grants to States $268,013
84.060 Indian Education_grants to Local Educational Agencies $229,438
84.425 Education Stabilization Fund $176,387
10.553 School Breakfast Program $125,228
84.367 Improving Teacher Quality State Grants $96,508
15.130 Indian Education_assistance to Schools $32,877
10.555 National School Lunch Program $18,200
10.582 Fresh Fruit and Vegetable Program $17,539
84.173 Special Education_preschool Grants $13,200
10.558 Child and Adult Care Food Program $323