Finding 480316 (2023-004)

Material Weakness
Requirement
CL
Questioned Costs
-
Year
2023
Accepted
2024-08-02
Audit: 316541
Auditor: Bergankdv LTD

AI Summary

  • Core Issue: The District lacks adequate segregation of accounting duties due to a limited number of employees, risking financial reporting integrity.
  • Impacted Requirements: Internal controls over financial data processing and reporting are compromised, potentially affecting compliance with management assertions.
  • Recommended Follow-Up: Regularly assess the accounting system and implement segregation of duties whenever feasible to strengthen controls.

Finding Text

Criteria: Internal control that supports the District's ability to initiate, record, process, and report financial data consistent with the assertions of management in the financial statements requires adequate segregation of accounting duties. Condition: During the year ended June 30, 2023, the District had a lack of segregation of accounting duties due to a limited number of office employees. This lack of segregation of accounting duties can be demonstrated in the following areas, which is not intended to be an all-inclusive list: The Program Director is responsible for reporting without review. The Program Director is responsible for preparing reimbursement requests without review Management is aware of this condition and will take certain steps to compensate for the lack of segregation. However, due to the small accounting staff needed to handle all of the accounting duties, the cost of obtaining desirable segregation of accounting duties can often exceed benefits which could be derived. Due to this reason, management has determined a complete segregation of accounting duties is impractical to correct. Context: This finding impacts the internal control over financial reporting.Effect or Potential Effect: The lack of adequate segregation of accounting duties could adversely affect the District's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. Cause: There are a limited number of office employees. Recommendation: Continue to review the accounting system, including changes that may occur. Implement segregation whenever practical.

Corrective Action Plan

1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding Administration will add additional internal controls where the benefit exceeds the cost. 3. Official Responsible for Ensuring CAP Michael Marshall, Board Secretary/Treasurer, is the official responsible for ensuring corrective action of the deficiency. 4. Planned Completion Date for CAP The planned completion date for the CAP is June 30, 2024. 5. Plan to Monitor Completion of CAP The School Board will be monitoring this CAP.

Categories

Cash Management Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1056758 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $326,318
10.555 National School Lunch Program $241,782
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $85,464
84.010 Title I Grants to Local Educational Agencies $53,268
93.799 Cara Act – Comprehensive Addiction and Recovery Act of 2016 $49,980
84.027 Special Education_grants to States $49,116
32.009 Emergency Connectivity Fund Program $40,357
10.553 School Breakfast Program $29,033
84.367 Improving Teacher Quality State Grants $12,911
84.287 Twenty-First Century Community Learning Centers $11,497
84.424 Student Support and Academic Enrichment Program $10,001
84.425 Covid-19 Education Stabilization Fund $834
10.574 Team Nutrition Grants $320