Finding 524333 (2023-002)

Material Weakness Repeat Finding

Requirement

ABFL

Questioned Costs

Year

2023

Accepted

2025-02-24

Audit: 343524

Organization: Lenox Community School District (IA)

Auditor: Nolte Cornman & Johnson

AI Summary

Core Issue: One employee has too much control over critical financial areas, risking incompatible duties.
Impacted Requirements: This affects the internal control structure necessary for safeguarding major federal programs.
Recommended Follow-Up: Implement proper segregation of duties to enhance oversight and reduce risk.

Finding Text

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 major federal programs; cash, inventories, receipts, disbursements, payroll, wire transfers, transfers, computer systems and manual journal entries. See finding 2023 001.

Corrective Action Plan

The District will continue to review the duties of office employees and segregate duties where possible.

Other Findings in this Audit

524334 2023-002

Material Weakness Repeat
1100775 2023-002

Material Weakness Repeat
1100776 2023-002

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
10.555	National School Lunch Program	$254,013
84.010	Title I Grants to Local Educational Agencies	$101,339
10.553	School Breakfast Program	$42,561
84.358	Rural Education	$40,432
84.027	Special Education Grants to States	$22,102
84.048	Career and Technical Education -- Basic Grants to States	$11,980
84.367	Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants)	$10,874
84.424	Student Support and Academic Enrichment Program	$10,000
84.425	Education Stabilization Fund	$3,925