Finding 498122 (2023-002)

Material Weakness

Requirement

ABFL

Questioned Costs

Year

2023

Accepted

2024-09-25

Audit: 320799

Organization: Villisca Community School District (IA)

Auditor: Nolte Cornman & Johnson PC

AI Summary

Core Issue: One employee has too much control over critical financial areas, increasing the risk of errors or fraud.
Impacted Requirements: This violates the principle of segregation of duties, which is essential for effective internal controls.
Recommended Follow-Up: Review and redistribute 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, investments, receipts, disbursements, payroll, financial reporting, computer systems, manual journal entries, and school lunch program. See finding 2023-001.

Corrective Action Plan

The District will investigate available alternatives to obtain the maximum internal control possible under the circumstances utilizing current personnel, including elected officials and implement them as soon as possible.

Other Findings in this Audit

498123 2023-002

Material Weakness
1074564 2023-002

Material Weakness
1074565 2023-002

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
84.425	Education Stabilization Fund	$380,858
10.555	National School Lunch Program	$147,533
84.010	Title I Grants to Local Educational Agencies	$73,918
10.553	School Breakfast Program	$32,863
84.358	Rural Education	$19,686
10.558	Child and Adult Care Food Program	$19,147
84.027	Special Education_grants to States	$13,696
84.367	Improving Teacher Quality State Grants	$11,723
84.424	Student Support and Academic Enrichment Program	$10,000
10.559	Summer Food Service Program for Children	$2,952