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.