Finding 520754 (2023-002)

Material Weakness Repeat Finding

Requirement

ABEILN

Questioned Costs

Year

2023

Accepted

2025-01-30

Audit: 340517

Organization: East Marshall Community School District (IA)

Auditor: Nolte Cornman & Johnson

AI Summary

Core Issue: One employee has too much control over multiple financial areas, risking incompatible duties.
Impacted Requirements: This violates the principle of segregation of duties, which is crucial for internal controls.
Recommended Follow-up: Reassign responsibilities to ensure no single employee manages conflicting tasks.

Finding Text

Segregation of Duties - One important aspect of the internal control structure 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 portions of one or more of the following areas for the District relating to federal programs; cash, investments, capital assets, receipts, inventories, journal entries and payroll. See finding 2023-001.

Corrective Action Plan

The District continues to have segregation of duties as a priority. We accept the auditor’s guidance and continue to keep the task of segregation of duties as a priority.

Other Findings in this Audit

520755 2023-002

Material Weakness Repeat
1097196 2023-002

Material Weakness Repeat
1097197 2023-002

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
10.555	National School Lunch Program	$300,453
84.425	Education Stabilization Fund	$193,330
84.010	Title I Grants to Local Educational Agencies	$90,311
81.041	State Energy Program	$82,610
10.553	School Breakfast Program	$40,870
84.027	Special Education Grants to States	$27,694
84.367	Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants)	$15,942
84.424	Student Support and Academic Enrichment Program	$10,000
84.048	Career and Technical Education -- Basic Grants to States	$7,997