Finding 524711 (2023-002)

Material Weakness

Requirement

ABFL

Questioned Costs

Year

2023

Accepted

2025-02-27

Audit: 344142

Organization: Lake Mills Community School District (IA)

Auditor: Nolte Cornman & Johnson PC

AI Summary

Answer: There is a lack of proper segregation of duties, allowing one employee to control multiple incompatible areas.
Trend: This issue could lead to increased risk of errors or fraud in managing major federal programs.
List: Review and adjust employee roles to ensure duties are properly segregated, particularly in cash, investments, receipts, payroll, financial reporting, and computer systems.

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, investments, receipts, payroll, financial reporting and computer systems. See finding 2023-001

Corrective Action Plan

The District will review its control procedures and attempt to maximize internal control with a limited number of office employees.

Other Findings in this Audit

524712 2023-002

Material Weakness
1101153 2023-002

Material Weakness
1101154 2023-002

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
84.425	Education Stabilization Fund	$499,973
10.555	National School Lunch Program	$260,126
84.010	Title I Grants to Local Educational Agencies	$59,326
10.553	School Breakfast Program	$30,346
84.027	Special Education Grants to States	$25,372
84.367	Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants)	$19,664
84.424	Student Support and Academic Enrichment Program	$10,000
84.048	Career and Technical Education -- Basic Grants to States	$7,851