Finding 47309 (2022-005)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2022-12-11
Audit: 44458
Organization: Gallatin County Cusd #7 (IL)

AI Summary

  • Core Issue: Lack of documented approval from the Superintendent for expenditures increases the risk of inappropriate costs being charged to the grant program.
  • Impacted Requirements: Internal controls require that all expenditures be authorized and documented to ensure proper oversight.
  • Recommended Follow-Up: Ensure the Superintendent initials all invoices to provide clear documentation of approval moving forward.

Finding Text

Criteria: For good internal controls, expenditures should be authorized. Documentation of supervisory approval should also be retained for all expenditures. Condition: According to the District, the Superintendent reviews all expenditures and supporting documentation before payment is authorized. However, there is no documentation of this review. Questioned Costs: None. Context: Total expenditures of the program were $794,301 for the year ended June 30, 2022. Effect: Increases the risk that inappropriate expenditures could be applied to the grant program resulting in overcharging the grant for costs incurred. Our test was a statistical sample of 12 expenditures and 10 did not have documentation of supervisory approval. Cause: The prior auditor did not require or make the District aware that the school Superintendent was to approve all invoices before payment. Recommendation: We recommend the District provide proper documentation of the Superintendent's approval for payment of invoices. Management's Response: The Superintendent will begin noting her approval with her initial on all invoices.

Corrective Action Plan

Finding Type: Material Weakness CFDA 84.425D and 84.425U Name of Contact Person: Dr. Judy Kaegi, Superintendent. Recommendation: We recommend that the District provide proper documentation of the Superintendent's approval for payment of invoices. Corrective Action: The Superintendent will begin noting her approval with her initials on all invoices. Proposed Completion Date: Immediately.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 47310 2022-006
    Material Weakness
  • 47311 2022-007
    -
  • 47312 2022-005
    Material Weakness
  • 47313 2022-006
    Material Weakness
  • 47314 2022-007
    -
  • 623751 2022-005
    Material Weakness
  • 623752 2022-006
    Material Weakness
  • 623753 2022-007
    -
  • 623754 2022-005
    Material Weakness
  • 623755 2022-006
    Material Weakness
  • 623756 2022-007
    -

Programs in Audit

ALN Program Name Expenditures
10.553 School Breakfast Program $98,807
10.555 National School Lunch Program $31,160
84.424 Student Support and Academic Enrichment Program $23,692
84.010 Title I Grants to Local Educational Agencies $19,996
93.778 Medical Assistance Program $16,853
84.358 Rural Education $16,652
10.582 Fresh Fruit and Vegetable Program $15,561
10.558 Child and Adult Care Food Program $15,225
84.425 Education Stabilization Fund $13,696
84.367 Improving Teacher Quality State Grants $5,376
84.027 Special Education_grants to States $5,000
84.173 Special Education_preschool Grants $3,715
84.196 Education for Homeless Children and Youth $988
10.649 Pandemic Ebt Administrative Costs $614