FAC Explorer

Finding 478616 (2023-002)

Material Weakness Repeat Finding
Requirement
ABFL
Questioned Costs
-
Year
2023
Accepted
2024-07-16
Audit: 315243
Organization: Mid-Prairie Community School District (IA)
Auditor: Nolte Cornman & Johnson PC

AI Summary

  • Core Issue: One employee has too much control over critical financial areas, which can lead to potential fraud or errors.
  • Impacted Requirements: This situation violates the principle of segregation of duties, essential for maintaining internal controls.
  • Recommended Follow-up: Review and adjust responsibilities to ensure no single employee manages incompatible 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, inventories, receipts, payroll, disbursements, financial reporting, computer systems and journal entries. See finding 2023-001.

Corrective Action Plan

The District has implemented additional controls such as mandatory vacations for accounting staff and the engagement of an independent accounting professional who performs unannounced reviews of the current activities and processes cited above, as well as reviewing the workflow and work area, including electronic and paper files and correspondence of each employee while on their mandatory vacation. Written reports are provided to the Superintendent after each review visit and added to the employee’s personnel file. The District will continue to review internal controls and explore alternatives to improve segregation of duties.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 478617 2023-002
    Material Weakness Repeat
  • 1055058 2023-002
    Material Weakness Repeat
  • 1055059 2023-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $446,830
84.010 Title I Grants to Local Educational Agencies $301,004
84.425 Education Stabilization Fund $90,251
84.367 Improving Teacher Quality State Grants $77,868
84.027 Special Education_grants to States $57,994
10.553 School Breakfast Program $36,746
84.048 Career and Technical Education -- Basic Grants to States $27,427
84.424 Student Support and Academic Enrichment Program $17,838