FAC Explorer

Finding 518902 (2024-004)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-01-13
Audit: 337383
Organization: Lancaster County School District 145 (NE)
Auditor: Romans Wiemer & Associates Cpa's PC

AI Summary

  • Core Issue: Lack of adequate personnel leads to insufficient segregation of duties in financial transactions.
  • Impacted Requirements: Internal controls must ensure that authorization, recording, and custody of assets are handled by different employees.
  • Recommended Follow-Up: Explore cost-effective ways to segregate duties to reduce risk of errors and irregularities.

Finding Text

MATERIAL WEAKNESS 2024-004 Internal Control Structure Design Program: Child Nutrition Assistance Listing # 10.555 & 10.553 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

November 4, 2024 School District No. 55-0145, Waverly, 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 November 4, 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. COMPLIANCE 2024-002 Deposit Risk Recommendation: Obtain adequate pledged securities from the financial institution. Action Taken: District personnel will contact the bank about getting additional coverage. 2024-003 Disbursements in Excess of Budget Recommendation: Either not approve disbursements over budgeted amounts or amend the budget if extra disbursements are needed. Action Taken: The District will monitor funds closer and either not approve disbursements over budgeted amounts or amend the budget if needed in the future. FINDINGS – FEDERAL AWARD PROGRAM AUDIT Nebraska Department of Education 2024-004 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 Mikal Shalikow at (402) 786-2321. Sincerely yours, Name Title School District No. 55-0145, of Waverly, Nebraska

Categories

Internal Control / Segregation of Duties Material Weakness School Nutrition Programs

Other Findings in this Audit

  • 518903 2024-004
    Material Weakness Repeat
  • 518904 2024-004
    Material Weakness Repeat
  • 518905 2024-004
    Material Weakness Repeat
  • 1095344 2024-004
    Material Weakness Repeat
  • 1095345 2024-004
    Material Weakness Repeat
  • 1095346 2024-004
    Material Weakness Repeat
  • 1095347 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $630,250
10.555 National School Lunch Program $158,693
84.010 Title I Grants to Local Educational Agencies $145,305
10.553 School Breakfast Program $35,351
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $30,075
84.027 Special Education Grants to States $13,647
93.778 Medical Assistance Program $7,629
84.173 Special Education Preschool Grants $6,665