Finding 526395 (2024-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-10

AI Summary

  • Core Issue: The District's main checking account was not reconciled to the general ledger on time throughout 2023-2024.
  • Impacted Requirements: Timely cash reconciliations are essential to identify and resolve errors quickly, as per internal control standards.
  • Recommended Follow-Up: Develop and implement procedures for timely reconciliations, ensuring a separate review process with initialing and dating by the reviewer.

Finding Text

Finding #2024-003 – Cash Reconciliations (Prior Year Finding #2023-003) Condition: The main checking account of the District was not reconciled to the general ledger in a timely manner throughout 2023-2024. Effect: Not reconciling cash accounts on a timely basis could lead to errors or other problems not being recognized and resolved in a timely manner. General ledger cash balances should be reconciled to monthly bank statements shortly after bank statements are received. Cause: The District’s main checking account was not reconciled to the general ledger on a monthly basis throughout the year. Criteria: Internal controls should be kept in place to make sure that cash is reconciled timely and that reconciliations are tied to the general ledger on a monthly basis. Recommendation: We recommend the District develop procedures to reconcile all cash accounts to the general ledger in a timely manner. The reconciliations should be reviewed by someone other than the person preparing the reconciliation. The reviewer should initial and date the reconciliations when the review is complete. Response: The District will begin reconciling cash to the general ledger on a timely basis during the 2024-2025 fiscal year.

Corrective Action Plan

Finding #2024-003 - Cash Reconciliations (Prior Year Finding #2023-003) Condition: The main checking account of the District was not reconciled to the general ledger in a timely manner throughout 2023-2024. Effect: Not reconciling cash accounts on a timely basis could lead to errors or other problems not being recognized and resolved in a timely manner. General ledger cash balances should be reconciled to monthly bank statements shortly after bank statements are received. Cause: The District's main checking account was not reconciled to the general ledger on a monthly basis throughout the year. Criteria: Internal controls should be kept in place to make sure that cash is reconciled timely and that reconciliations are tied to the general ledger on a monthly basis. Recommendation: We recommend the District develop procedures to reconcile all cash accounts to the general ledger in a timely manner. The reconciliations should be reviewed by someone other than the person preparing the reconciliation. The reviewer should initial and date the reconciliations when the review is complete. Response: The District will begin reconciling cash to the general ledger on a timely basis during the 2024-2025 fiscal year. Contact Person: Ryan Bohnsack Anticipated Completion: June 30, 2025

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 526393 2024-001
    Material Weakness Repeat
  • 526394 2024-002
    Material Weakness Repeat
  • 526396 2024-001
    Material Weakness Repeat
  • 526397 2024-002
    Material Weakness Repeat
  • 526398 2024-003
    Material Weakness Repeat
  • 526399 2024-001
    Material Weakness Repeat
  • 526400 2024-002
    Material Weakness Repeat
  • 526401 2024-003
    Material Weakness Repeat
  • 1102835 2024-001
    Material Weakness Repeat
  • 1102836 2024-002
    Material Weakness Repeat
  • 1102837 2024-003
    Material Weakness Repeat
  • 1102838 2024-001
    Material Weakness Repeat
  • 1102839 2024-002
    Material Weakness Repeat
  • 1102840 2024-003
    Material Weakness Repeat
  • 1102841 2024-001
    Material Weakness Repeat
  • 1102842 2024-002
    Material Weakness Repeat
  • 1102843 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education Grants to States $303,107
84.425 Education Stabilization Fund $191,550
84.010 Title I Grants to Local Educational Agencies $128,575
93.778 Medical Assistance Program $95,071
10.553 School Breakfast Program $16,258
84.173 Special Education Preschool Grants $15,753
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $14,469
84.424 Student Support and Academic Enrichment Program $11,316
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $10,112
84.048 Career and Technical Education -- Basic Grants to States $6,664
10.555 National School Lunch Program $1,534