Finding 478659 (2023-002)

Material Weakness

Requirement

ABFL

Questioned Costs

-

Year

2023

Accepted

2024-07-16

Audit: 315260

Organization: Grundy Center Community School District (IA)

Auditor: Nolte Cornman & Johnson PC

AI Summary

Core Issue: An employee has too much control over multiple incompatible duties, increasing the risk of errors or fraud.
Impacted Requirements: This violates the principle of segregation of duties, which is crucial for effective internal controls.
Recommended Follow-Up: Review and redistribute responsibilities to ensure no single employee manages conflicting tasks.

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, inventories, receipts, disbursements, payroll, journal entries, computer systems and the school nutrition program. See finding 2023-001.

Corrective Action Plan

The District continually reviews internal controls and makes changes where appropriate.

Programs in Audit

ALN	Program Name	Expenditures
84.425	Education Stabilization Fund	$277,170
10.555	National School Lunch Program	$256,666
93.354	Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response	$72,602
84.010	Title I Grants to Local Educational Agencies	$58,511
84.027	Special Education_grants to States	$29,725
10.553	School Breakfast Program	$22,124
84.367	Improving Teacher Quality State Grants	$11,490
84.424	Student Support and Academic Enrichment Program	$10,000
84.048	Career and Technical Education -- Basic Grants to States	$7,621

Finding 478659 (2023-002)

AI Summary

Finding Text

Corrective Action Plan

Categories

Other Findings in this Audit

Programs in Audit