FAC Explorer

Finding 518892 (2024-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-01-13
Audit: 337347
Organization: David City Public Schools (NE)
Auditor: Romans Wiemer & Associates Cpa's PC

AI Summary

  • Core Issue: The district lacks adequate personnel to ensure that different employees manage separate parts of the same transaction.
  • Impacted Requirements: Internal controls must ensure that authorization, recording, and custody of assets are handled by different individuals to minimize risks.
  • Recommended Follow-Up: Consider implementing segregation of duties despite costs, as it is crucial for reducing the risk of errors and irregularities.

Finding Text

MATERIAL WEAKNESS 2024-002 Internal Control Structure Design Program: Special Education Cluster Assistance Listing # 84.027 & 84.173 ESSER III Assistance Listing # 84.425 Condition: Adequate personnel are not available to assign responsibilities in such a way that different employees handle different parts of the same transaction. Cause: District has limited Number of personnel. Criteria: Internal controls should be in place that provides reasonable assurance that authorization or approval of transactions, recording of transactions, and custody of assets are segregated activities. Effect: Due to the absence of segregation of duties, the level of risk that errors or irregularities, material in relation to the financial statements, may occur and not be detected within a timely period by the employees, in the normal course of performing their assigned functions, has not been reduced to a relatively low level. Repeat Finding : Immediately preceding year. Recommendation: While considering the cost of any benefits derived, activities should be segregated and handled by different employees. Questioned Costs: $0.00 Grantee Response/Corrective Action Plan: The cost of implementing a complete set of controls far outweighs the benefits derived by such. It is not financially feasible to have a complete set of controls.

Corrective Action Plan

October 29, 2024 School District No. 12-0056, David City, Nebraska, respectfully submits the following corrective action plan for the year ended August 31, 2024. Name and address of independent public accounting firm: Romans, Wiemer & Associates, Certified Public Accountants, P.C., 1910 N Lincoln Ave, York, NE 68467 Audit Period: September 1, 2023 through August 31, 2024 The findings from the October 95, 2024 schedule of findings and questioned cost are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS 2024-001 Internal Control Structure Design Recommendation: While considering the cost of any benefits derived, activities should be segregated and handled by different employees. Action Taken: The cost of implementing a complete set of controls far outweighs the benefits derived by such. It is not financially feasible to have a complete set of controls. FINDINGS – FEDERAL AWARD PROGRAM AUDIT Nebraska Department of Education 2024-002 Internal Control Structure Design Recommendation: While considering the cost of any benefits derived, activities should be segregated and handled by different employees. Action Taken: The cost of implementing a complete set of controls far outweighs the benefits derived by such. It is not financially feasible to have a complete set of controls. If the Nebraska Department of Education has questions regarding this plan, please call Chad Denker at (402) 367-4590.

Categories

Internal Control / Segregation of Duties Material Weakness

Other Findings in this Audit

  • 518893 2024-002
    Material Weakness Repeat
  • 518894 2024-002
    Material Weakness Repeat
  • 518895 2024-002
    Material Weakness Repeat
  • 1095334 2024-002
    Material Weakness Repeat
  • 1095335 2024-002
    Material Weakness Repeat
  • 1095336 2024-002
    Material Weakness Repeat
  • 1095337 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $226,220
84.010 Title I Grants to Local Educational Agencies $112,223
10.553 School Breakfast Program $39,626
10.555 National School Lunch Program $35,053
84.027 Special Education_grants to States $30,973
84.367 Improving Teacher Quality State Grants $19,446
84.424 Student Support and Academic Enrichment Program $11,308
93.778 Medical Assistance Program $9,472
10.582 National School Lunch Program $4,582
84.173 Special Education_preschool Grants $3,165