FAC Explorer

Finding 503773 (2024-003)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2024
Accepted
2024-10-28
Audit: 326057
Organization: Edwardsburg Public Schools (MI)
Auditor: Rehmann Robson LLC

AI Summary

  • Core Issue: Journal entries were made without independent approval, violating internal control standards.
  • Impacted Requirements: Compliance with federal guidelines for financial transactions, specifically in the Child Nutrition Cluster.
  • Recommended Follow-Up: Implement a process for independent review and approval of all journal entries to mitigate risks.

Finding Text

Finding Type. Immaterial noncompliance; Significant deficiency in internal control over compliance (Activites allowed or unallowed and cost principles). Federal Programs. Child Nutrition Cluster; U.S. Department of Agriculture; ALN 10.553 and 10.555. Criteria. A single individual should not record the transaction in the accounting records without independent review from another employee. Condition. Throughout the year journal entries were posted without independent approval. Cause. This condition was the result of a lack of internal controls in place to ensure that each journal entry is independently approved before entered into the system. Effect. As a result of this condition, the District is exposed to an increased risk that misstatements or misappropriations might occur and not be detected by management in a timely manner. Questioned Costs. No costs have been questioned as a result of this finding. Recommendation. We recommend that the District's journal entries be independently reviewed, signed and dated, as evidence of this control. View of Responsible Officials. We concur with the audit assessment regarding this matter.

Corrective Action Plan

Auditor Description of Condition and Effect. Throughout the year journal entries were posted without independent approval. As a result of this condition, the District is exposed to an increased risk that misstatements or misappropriations might occur and not be detected by management in a timely manner. Auditor Recommendation. We recommend that the District's journal entries be independently reviewed, signed and dated, as evidence of this control. Corrective Action. The District will implement a new procedure to ensure each journal entry goes through a review process before being posted. Responsible Person. Gail Enders, Finance Director Anticipated Completion Date. June 30, 2025

Categories

Allowable Costs / Cost Principles School Nutrition Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 503774 2024-004
    Significant Deficiency
  • 503775 2024-005
    Significant Deficiency
  • 503776 2024-003
    Significant Deficiency
  • 503777 2024-004
    Significant Deficiency
  • 503778 2024-005
    Significant Deficiency
  • 503779 2024-003
    Significant Deficiency
  • 503780 2024-004
    Significant Deficiency
  • 503781 2024-005
    Significant Deficiency
  • 503782 2024-003
    Significant Deficiency
  • 503783 2024-004
    Significant Deficiency
  • 503784 2024-005
    Significant Deficiency
  • 503785 2024-003
    Significant Deficiency
  • 503786 2024-004
    Significant Deficiency
  • 503787 2024-005
    Significant Deficiency
  • 503788 2024-003
    Significant Deficiency
  • 503789 2024-004
    Significant Deficiency
  • 503790 2024-005
    Significant Deficiency
  • 1080215 2024-003
    Significant Deficiency
  • 1080216 2024-004
    Significant Deficiency
  • 1080217 2024-005
    Significant Deficiency
  • 1080218 2024-003
    Significant Deficiency
  • 1080219 2024-004
    Significant Deficiency
  • 1080220 2024-005
    Significant Deficiency
  • 1080221 2024-003
    Significant Deficiency
  • 1080222 2024-004
    Significant Deficiency
  • 1080223 2024-005
    Significant Deficiency
  • 1080224 2024-003
    Significant Deficiency
  • 1080225 2024-004
    Significant Deficiency
  • 1080226 2024-005
    Significant Deficiency
  • 1080227 2024-003
    Significant Deficiency
  • 1080228 2024-004
    Significant Deficiency
  • 1080229 2024-005
    Significant Deficiency
  • 1080230 2024-003
    Significant Deficiency
  • 1080231 2024-004
    Significant Deficiency
  • 1080232 2024-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $222,514
10.553 School Breakfast Program $183,096
10.555 National School Lunch Program $91,405
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $72,240
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $45,258
10.185 Local Food for Schools Cooperative Agreement Program $44,015
84.424 Student Support and Academic Enrichment Program $15,678
10.579 Child Nutrition Discretionary Grants Limited Availability $9,997
93.778 Medical Assistance Program $9,010
84.425 Education Stabilization Fund $8,749
10.558 Child and Adult Care Food Program $373