Finding 48298 (2022-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-03-29

AI Summary

  • Core Issue: There is a lack of proper segregation of duties in key control areas, which increases the risk of undetected errors or fraud.
  • Impacted Requirements: Internal controls should ensure that different employees handle distinct tasks, particularly in accounts payable and payroll processes.
  • Recommended Follow-Up: Implement procedures to separate duties among staff, while management should stay informed about operational matters despite staffing limitations.

Finding Text

Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Controls Over Accounts Payable/Disbursements 1. Person processing accounts payable is not always separate from those who print the checks. Controls Over Payroll 1. Person preparing the payroll is not independent of other personnel duties such as custody of the checks and reconciling the bank statements. Criteria: Internal controls should be in place that provide adequate segregation of duties. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Principal at the High School or Elementary/Middle School approves monthly accounts payable checks and the Department Head or Principal approves payroll timesheets prior to processing payroll. The Principals and Department Heads will continue to monitor transactions of the District.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 48296 2022-001
    Significant Deficiency Repeat
  • 48297 2022-001
    Significant Deficiency Repeat
  • 48299 2022-001
    Significant Deficiency Repeat
  • 48300 2022-001
    Significant Deficiency Repeat
  • 48301 2022-001
    Significant Deficiency Repeat
  • 624738 2022-001
    Significant Deficiency Repeat
  • 624739 2022-001
    Significant Deficiency Repeat
  • 624740 2022-001
    Significant Deficiency Repeat
  • 624741 2022-001
    Significant Deficiency Repeat
  • 624742 2022-001
    Significant Deficiency Repeat
  • 624743 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education_grants to States $217,152
84.010 Title I Grants to Local Educational Agencies $187,148
32.009 Emergency Connectivity Fund Program $132,265
10.555 National School Lunch Program $91,484
93.778 Medical Assistance Program $80,556
84.367 Improving Teacher Quality State Grants $41,719
84.424 Student Support and Academic Enrichment Program $15,524
84.365 English Language Acquisition State Grants $10,482
84.048 Career and Technical Education -- Basic Grants to States $6,630
84.173 Special Education_preschool Grants $6,129
84.425 Education Stabilization Fund $2,759
10.649 Pandemic Ebt Administrative Costs $614