FAC Explorer

Finding 519993 (2023-002)

Material Weakness Repeat Finding
Requirement
ABEILN
Questioned Costs
-
Year
2023
Accepted
2025-01-23
Audit: 339431
Organization: Lamoni Community School District (IA)
Auditor: Nolte Cornman & Johnson

AI Summary

  • Core Issue: One employee has too much control over multiple financial areas, risking improper handling of funds.
  • Impacted Requirements: This violates the principle of segregation of duties, which is crucial for internal accounting controls.
  • Recommended Follow-Up: Review and redistribute responsibilities to ensure no single employee manages incompatible duties.

Finding Text

Segregation of Duties - One important aspect of internal accounting control 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 one or more of the following areas for the District relating to federal programs; cash, investments, receipts, disbursements, capital assets, financial reporting, school lunch program and journal entries. See finding 2023-001.

Corrective Action Plan

The District reviews this audit finding internally on an annual basis, identifying control procedures and processes that would leverage movement toward the maximum internal control possible with available staffing. The District does recognize this is difficult with a limited number of employees. We will continue to review our procedures to best meet the needs of the District as well as have internal control in place. We will work on dividing out duties and responsibilities so no one person is handling all cash, receipts, and financial transactions without checks & balance in place. A Business Office employee will collect cash and count, and another person will create the deposit slip, with a 3rd person (front office secretary) taking the actual deposit to the bank. Then the Business office employee will be the one responsible for entering the cash receipt into Software.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 519994 2023-002
    Material Weakness Repeat
  • 519995 2023-002
    Material Weakness Repeat
  • 519996 2023-002
    Material Weakness Repeat
  • 519997 2023-002
    Material Weakness Repeat
  • 1096435 2023-002
    Material Weakness Repeat
  • 1096436 2023-002
    Material Weakness Repeat
  • 1096437 2023-002
    Material Weakness Repeat
  • 1096438 2023-002
    Material Weakness Repeat
  • 1096439 2023-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $277,356
10.555 National School Lunch Program $184,947
84.010 Title I Grants to Local Educational Agencies $99,466
32.009 Emergency Connectivity Fund Program $73,192
93.600 Head Start $68,640
84.287 Twenty-First Century Community Learning Centers $50,215
10.553 School Breakfast Program $41,015
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $22,887
84.358 Rural Education $17,849
84.027 Special Education Grants to States $15,535
84.048 Career and Technical Education -- Basic Grants to States $12,723
84.424 Student Support and Academic Enrichment Program $12,266
10.559 Summer Food Service Program for Children $9,093
10.582 Fresh Fruit and Vegetable Program $8,854
93.658 Foster Care Title IV-E $517