Finding 42436 (2022-001)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2022-11-20
Audit: 40553
Auditor: Axley & Rode LLP

AI Summary

  • Core Issue: Limited staff and personnel changes hindered full segregation of accounting duties.
  • Impacted Requirements: Procedures for segregating recording, authorizing, and custody functions were not fully effective.
  • Recommended Follow-Up: The Board should keep monitoring internal controls and implement compensating measures to safeguard assets and ensure timely transaction recording.

Finding Text

2022-01 - Segregation of Duties Condition: Due to the limited number of personnel and changes in staff during the period audited, a total segregation of certain accounting functions was not possible. Criteria: The District continues to establish procedures that would ensure proper segregation of certain accounting functions, especially, to limit the functions of recording, authorizing and custody. Effect: As a result, during the audit period, operation of procedures might not have allowed management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. Cause: The Board of Trustees and management is actively changing personnel responsibilities and procedures to limit the risk. Recommendation: We recommend that the Board of Trustees continue to monitor the internal accounting control procedures in use to assure that compensating controls are being utilized to provide assurance that assets are safeguarded and transactions are proper and recorded in a timely manner. These actions would mitigate, but not eliminate the risk of misstatement or misappropriation. Contact: Superintendent Timeframe: Ongoing

Corrective Action Plan

Corrective Action Plan 2021-01 - Segregation of Duties District management and the board will continue to monitor the internal accounting control procedures in use to assure that compensating controls are being utilized to provide assurance that assets are safeguarded and transactions are proper and recorded in a timely manner.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 42437 2022-001
    Significant Deficiency
  • 618878 2022-001
    Significant Deficiency
  • 618879 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $426,464
10.555 National School Lunch Program $262,683
84.010 Title I Grants to Local Educational Agencies $154,707
10.553 School Breakfast Program $97,626
10.565 Commodity Supplemental Food Program $28,891
84.367 Improving Teacher Quality State Grants $20,866
84.358 Rural Education $8,599
84.424 Student Support and Academic Enrichment Program $5,961