Finding 538011 (2024-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-03-27

AI Summary

  • Core Issue: The District lacks proper segregation of duties due to limited staff, leading to potential errors in financial processes.
  • Impacted Requirements: Internal controls are insufficient, increasing the risk of undetected errors or irregularities.
  • Recommended Follow-Up: Implement procedures to separate duties among employees, while management should stay informed about operational matters.

Finding Text

Finding #2024-001- Lack of Segregation of Duties (Prior Year Finding #2023-001) Condition: The limited size of the District’s office staff prevents the ideal separation of functions. The Accounts Payable/Payroll Administrative Assistant prints accounts payable checks, has access to the password to print electronic signatures and performs bank reconciliations. The Accounts Payable/Payroll Administrative Assistant also performed payroll functions during the previous year. Criteria: Internal controls should be in place that provide adequate segregation of duties. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Limited number of personnel. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district’s operations. Response: We agree with this finding but do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Board reviews and approves all expenditures on a monthly basis prior to mailing accounts payable checks. The Business Official also reviews accounts payable checks, bank reconciliations and payroll for accuracy.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education Grants to States $197,140
84.425 Education Stabilization Fund $190,441
10.555 National School Lunch Program $124,954
93.778 Medical Assistance Program $122,060
84.010 Title I Grants to Local Educational Agencies $111,250
21.027 Coronavirus State and Local Fiscal Recovery Funds $92,292
10.553 School Breakfast Program $19,666
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $16,650
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $10,517
84.424 Student Support and Academic Enrichment Program $10,000
84.173 Special Education Preschool Grants $6,129
84.048 Career and Technical Education -- Basic Grants to States $3,520