Finding 513396 (2024-007)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2024-12-06

AI Summary

  • Core Issue: The accounting function lacks adequate segregation of duties due to being managed by only two individuals.
  • Impacted Requirements: This situation compromises the effectiveness of internal controls, which are essential for financial integrity.
  • Recommended Follow-Up: The District should implement checks and balances, and the Board needs to actively review and approve all financial information.

Finding Text

Finding Number 2024-007: Criteria or specific requirement: 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 the inadequate segregation of duties. Context: The District's accounting function is mainly controlled by two individuals. Effect: The limited number of personnel limits the overall effectiveness of internal control. Cause: The District is unable to hire an adequate number of staff to increase the effectiveness of internal control. Recommendation: The District needs to segregate duties where possible and create checks and balances. The Board should be aware of this issue and closely review and approve all financial related information. Management's Response: The District is reviewing its financial policies and procedures to better segregate duties where possible. The Superintendent will make the Board aware of their responsibility in regards to reviewing and approving financial items and asking questions.

Corrective Action Plan

FINDINGS- MAJOR FEDERAL AWARD PROGRAMS Material Weakness U.S. DEPARTMENT OF AGRICULTURE- 2023 and 2024 Child Nutrition Cluster- AL Number 10.553, 10.555 Finding No.: 2024-007 Condition: The District's accounting function is controlled by a limited number of individuals resulting in the inadequate segregation of duties. Recommendation: The District needs to segregate duties where possible and create checks and balances. The Board should be aware of this issue and closely review and approve all financial related information. Action Taken: The District concurs with the recommendation. The District is reviewing its financial policies and procedures to better segregate duties where possible. The Superintendent will make the Board aware of their responsibility in regards to reviewing and approving financial items and asking questions. Anticipated Date of Completion: Ongoing

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 513395 2024-006
    Material Weakness Repeat
  • 513397 2024-007
    Material Weakness
  • 1089837 2024-006
    Material Weakness Repeat
  • 1089838 2024-007
    Material Weakness
  • 1089839 2024-007
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $369,098
84.027 Special Education Grants to States $164,784
10.555 National School Lunch Program $148,561
84.010 Title I Grants to Local Educational Agencies $122,016
84.358 Rural Education $48,061
10.553 School Breakfast Program $40,187
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $14,355
93.778 Medical Assistance Program $13,015
84.173 Special Education Preschool Grants $8,326
84.048 Career and Technical Education -- Basic Grants to States $4,985
84.424 Student Support and Academic Enrichment Program $1,243
10.649 Pandemic Ebt Administrative Costs $653