Finding 51982 (2022-001)

Significant Deficiency Repeat Finding

Requirement

Questioned Costs

Year

2022

Accepted

2023-02-26

Audit: 52138

Organization: Unified School District No. 466 (KS)

Auditor: Vonfeldt Bauer & Vonfeldt Chtd

AI Summary

Core Issue: There is a lack of segregation of duties in the accounting function due to a limited number of employees.
Impacted Requirements: Proper segregation of duties is necessary to ensure financial statements are accurate and free from material misstatements.
Recommended Follow-Up: The Superintendent and Board of Education should consider this issue during their review of financial activities and reports.

Finding Text

Finding 2022-001 - Lack of Segregation of Duties CONDITION: Lack of segregation of duties due to the small number of employees involved in the accounting function of the District. CRITERIA: Segregation of duties should be in place to provide reasonable assurance that the financial statement is fairly stated and free of material misstatement. CAUSE: Small number of employees in the accounting function makes proper segregation of duties impossible. POTENTIAL EFFECT OF CONDITION: Errors or irregularities could occur that would not be prevented or detected in a timely manner that would cause a misstatement of the financial statement that is more than inconsequential. RECOMMENDATION: To mitigate this deficiency we recommend that the Superintendent and Board of Education consider this condition while performing their monitoring and review of the financial statement activity and reports. CLIENT RESPONSE: The District is in agreement with this finding. The District's response is in the attached Corrective Action Plan.

Corrective Action Plan

Finding 2022-001 - Lack of Segregation of Duties The District understands that this is a significant deficiency but feels it is not cost-effective at this time to hire additional employees to properly segregate duties. We feel that the oversight performed by the Superintendent and Board of Education over the financial statement activity and reports of the District is adequate to help mitigate the lack of segregation of duties. We believe it would be inefficient and cost prohibitive to hire the additional employees needed to properly segregate duties so at this time we do not plan on making any changes. However, we will continue to monitor this situation and periodically determine if it is cost-effective for us to properly segregate duties.

Other Findings in this Audit

628424 2022-001

Significant Deficiency Repeat

Programs in Audit

ALN	Program Name	Expenditures
84.425	Education Stabilization Fund	$897,832
10.555	National School Lunch Program	$574,874
84.010	Title I Grants to Local Educational Agencies	$151,074
10.559	Summer Food Service Program for Children	$111,499
10.553	School Breakfast Program	$89,003
84.287	Twenty-First Century Community Learning Centers	$68,909
84.367	Improving Teacher Quality State Grants	$25,141
84.424	Student Support and Academic Enrichment Program	$17,260
84.365	English Language Acquisition State Grants	$14,065
10.649	Pandemic Ebt Administrative Costs	$614
93.079	Cooperative Agreements to Promote Adolescent Health Through School-Based Hiv/std Prevention and School-Based Surveillance	$267