Finding 537585 (2024-002)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-03-27

AI Summary

  • Core Issue: Limited separation of duties in the small accounting department increases the risk of undetected errors or irregularities.
  • Impacted Requirements: Internal controls must protect assets, ensure compliance, and promote efficient operations.
  • Recommended Follow-Up: The Board should acknowledge the elevated risk and consider enhancing monitoring and compensating controls.

Finding Text

2024-001 Separation of Duties Criteria: An effective internal control structure of an organization will include procedures and actions to: 1. Protect its assets against theft and waste. 2. Ensure compliance with the organization's policies, procedures and statutory requirements. 3. Evaluate the performance of personnel to promote efficient operations. 4. Ensure accurateSeparation of duties requires that someone other than the employee responsible for safeguarding the asset must maintain the accounting records for that asset. When an organization separates duties of the employees, it minimizes the probability of an error or irregularity occurring and not being timely detected Condition: Due to the small size of the accounting department of the District, the possibility of adequate separation of duties over certain transaction cycles is limited. Recommendation: While we recognize that it is impractical for the District to achieve complete separation of duties over all transaction cycles within the District, it is important that the Board be aware of the chance of errors and irregularities not being timely detected is elevated. Auditee Response: The District has separated duties to the extent possible and has implemented compensating controls to monitor the accounting activities. and reliable operating and accounting data.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 537583 2024-002
    Significant Deficiency Repeat
  • 537584 2024-002
    Significant Deficiency Repeat
  • 537586 2024-002
    Significant Deficiency Repeat
  • 1114025 2024-002
    Significant Deficiency Repeat
  • 1114026 2024-002
    Significant Deficiency Repeat
  • 1114027 2024-002
    Significant Deficiency Repeat
  • 1114028 2024-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $261,530
84.425 Education Stabilization Fund $137,414
84.287 Twenty-First Century Community Learning Centers $68,634
84.371 Comprehensive Literacy Development $67,215
84.424 Student Support and Academic Enrichment Program $63,366
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $31,175
10.553 School Breakfast Program $23,936
84.048 Career and Technical Education -- Basic Grants to States $23,687
84.027 Special Education Grants to States $15,790
10.555 National School Lunch Program $11,817
84.173 Special Education Preschool Grants $4,137