Finding 516060 (2023-002)

Material Weakness

Requirement

ABL

Questioned Costs

Year

2023

Accepted

2024-12-19

Audit: 333830

Organization: Red Oak Community School District (IA)

Auditor: Nolte Cornman & Johnson PC

AI Summary

Core Issue: One employee has too much control over key financial areas, risking incompatible duties.
Impacted Requirements: This affects compliance with internal control standards for major federal programs.
Recommended Follow-Up: Implement segregation of duties to enhance oversight and reduce risk.

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, receipting, disbursements, capital assets, wire transfers, financial reporting and journal entries. See finding 2023-001.

Corrective Action Plan

The District now has one less office employee and are initiating additional separation of duties such as mail opening, check and deposit handling, and additional cross handling on outgoing checks.

Other Findings in this Audit

516061 2023-002

Material Weakness Repeat
1092502 2023-002

Material Weakness
1092503 2023-002

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
84.425	Education Stabilization Fund	$723,359
10.555	National School Lunch Program	$456,046
84.010	Title I Grants to Local Educational Agencies	$371,819
10.553	School Breakfast Program	$89,104
84.027	Special Education_grants to States	$52,935
84.367	Improving Teacher Quality State Grants	$45,122
10.582	Fresh Fruit and Vegetable Program	$34,652
84.424	Student Support and Academic Enrichment Program	$24,492
10.559	Summer Food Service Program for Children	$17,650
84.358	Rural Education	$966
10.185	Local Food for Schools Cooperative Agreement Program	$348