FAC Explorer

Finding 501698 (2023-002)

Material Weakness Repeat Finding
Requirement
ABFL
Questioned Costs
-
Year
2023
Accepted
2024-10-03
Audit: 323769
Organization: Missouri Valley Community School District (IA)
Auditor: Nolte Cornman & Johnson

AI Summary

  • Core Issue: There is a lack of proper segregation of duties, allowing a few individuals to control critical financial areas.
  • Impacted Requirements: This affects compliance with internal control standards for major federal programs, including cash handling and payroll.
  • Recommended Follow-Up: Review and redistribute responsibilities to ensure no single employee has control over 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 a limited number of individuals have control over portions of one or more of the following areas for the District relating to major federal programs; cash, disbursements, inventories, payroll, receipts, financial reporting, school nutrition program and journal entries. See finding 2023-001.

Corrective Action Plan

SBO is attending authorization classes and will bring discussion and resources back from training with Iowa State Business Management Academy to identify weaknesses in our processes and updating policies and procedures.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 501699 2023-002
    Material Weakness Repeat
  • 1078140 2023-002
    Material Weakness Repeat
  • 1078141 2023-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $283,818
84.010 Title I Grants to Local Educational Agencies $122,572
10.553 School Breakfast Program $53,460
84.027 Special Education Grants to States $36,187
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $22,128
84.425 Education Stabilization Fund $17,893
84.424 Student Support and Academic Enrichment Program $10,000
84.048 Career and Technical Education -- Basic Grants to States $2,801
16.839 Stop School Violence $1,734
10.185 Local Food for Schools Cooperative Agreement Program $760
10.559 Summer Food Service Program for Children $551