Finding 485660 (2024-004)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2024-09-04

AI Summary

  • Core Issue: The District's accounting function lacks adequate segregation of duties due to being controlled by a limited number of individuals.
  • Impacted Requirements: Internal controls are weakened, increasing the risk of errors or fraud.
  • Recommended Follow-Up: The District should implement duty segregation where possible and ensure the Board actively reviews and approves all financial information.

Finding Text

CRITERIA: The accounting function should be controlled by a sufficient number of individuals in order to have adequate segregation of duties. CONDITION: The District's accounting function is controlled by a limited number of individuals resulting in inadequate segregation of duties. CONTEXT: The District's accounting function is mainly controlled by one bookkeeper. EFFECT: The limited number of personnel hinders the overall effectiveness of internal controls. CAUSE: The District is unable to hire adequate number of staff to increase the effectiveness of internal control. RECOMMENDATION: The District should segregate duties where possible. The Board should be aware of this problem and closely review and approve all financial-related information. MANAGEMENT RESPONSE: The District has reviewed and continues to review its financial policies and procedures to better segregate duties where possible. The Director continually reminds the board about their responsibility in regards to reviewing and approving financial items and asking questions. It is not cost-feasible to hire additional personnel.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 485658 2024-004
    Material Weakness
  • 485659 2024-004
    Material Weakness
  • 1062100 2024-004
    Material Weakness
  • 1062101 2024-004
    Material Weakness
  • 1062102 2024-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $171,329
93.778 Medical Assistance Program $103,551
10.553 School Breakfast Program $27,314
10.555 National School Lunch Program $3,266
10.649 Pandemic Ebt Administrative Costs $653