FAC Explorer

Finding 525622 (2023-003)

Material Weakness Repeat Finding
Requirement
ABFL
Questioned Costs
-
Year
2023
Accepted
2025-03-04
Audit: 344740
Organization: Columbus Community School District (IA)
Auditor: Nolte Cornman & Johnson

AI Summary

  • Core Issue: An employee has too much control over multiple incompatible duties, increasing the risk of errors or fraud.
  • Impacted Requirements: This violates the principle of segregation of duties, which is essential for effective internal controls.
  • Recommended Follow-Up: Review and adjust responsibilities to ensure proper segregation of duties across all key areas.

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, inventories, receipts, disbursements, payroll, wire transfers, financial reporting, computer systems, school lunch program and journal entries. See finding 2023-001.

Corrective Action Plan

The district continues to find solutions to help segregate duties with our minimally staffed central office (business manager, administrative assistant & nutrition director). Over the past few years, we have begun utilizing our building secretaries for tasks such as entering receipts, writing deposit slips, etc. The district’s business manager & administrative assistant will work with board members on the finance & negotiations committee to develop a plan to add more checks & balances to our current operations. We will use the segregation of duties handbook to help with this process.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 1102064 2023-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $748,985
10.555 National School Lunch Program $382,720
84.010 Title I Grants to Local Educational Agencies $205,226
10.553 School Breakfast Program $80,083
84.027 Special Education Grants to States $37,048
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $22,603
10.582 Fresh Fruit and Vegetable Program $17,187
84.424 Student Support and Academic Enrichment Program $14,243
10.559 Summer Food Service Program for Children $13,176
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $7,903
84.011 Migrant Education State Grant Program $6,679
84.048 Career and Technical Education -- Basic Grants to States $5,389