Finding 401554 (2023-002)

Material Weakness Repeat Finding

Requirement

ABFL

Questioned Costs

Year

2023

Accepted

2024-06-24

Audit: 309591

Organization: Ikm-Manning Community School District (IA)

Auditor: Nolte Cornman & Johnson PC

AI Summary

Core Issue: One employee has control over multiple incompatible duties, which poses a risk to internal controls.
Impacted Requirements: This situation affects compliance with segregation of duties for major federal programs.
Recommended Follow-Up: Review and reassign responsibilities to ensure proper segregation of 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, investments, receipts, payroll and financial reporting. See finding 2023-001.

Corrective Action Plan

As a small district we have added an employee that is shared between our district and another to help review and delegate. As a small district I believe we are doing a good job of internal controls. Would it be nice to hire additional people, yes but financially it is not responsible. (we review every year our procedures and make sure we obtain the maximum internal control possible for our district under the circumstances).

Other Findings in this Audit

977996 2023-002

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
84.425	Education Stabilization Fund	$428,182
10.555	National School Lunch Program	$274,568
84.010	Title I Grants to Local Educational Agencies	$95,871
10.553	School Breakfast Program	$32,508
84.027	Special Education_grants to States	$31,463
81.255	Clean Energy Demonstrations	$20,000
84.367	Improving Teacher Quality State Grants	$19,227
84.424	Student Support and Academic Enrichment Program	$10,000
84.048	Career and Technical Education -- Basic Grants to States	$8,061