Finding 544386 (2024-002)

Material Weakness

Requirement

ABFL

Questioned Costs

Year

2024

Accepted

2025-03-31

Audit: 351035

Organization: Easton Valley Community School District (IA)

Auditor: Nolte Cornman & Johnson PC

AI Summary

Core Issue: One employee has too much control over critical financial areas, increasing the risk of errors or fraud.
Impacted Requirements: Segregation of duties is not being properly implemented, which is essential for internal controls.
Recommended Follow-Up: Review and adjust responsibilities to ensure no single employee manages incompatible duties.

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, disbursements, payroll, wire transfers, financial reporting, journal entries and the school nutrition program. See finding 2024-001.

Corrective Action Plan

The District will evaluate its internal controls and find ways to be the most efficient with them with a limited number of staff.

Other Findings in this Audit

1120828 2024-002

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
66.045	Clean School Bus Program	$1.17M
10.555	National School Lunch Program	$175,972
84.425	Education Stabilization Fund	$98,535
84.010	Title I Grants to Local Educational Agencies	$95,408
84.287	Twenty-First Century Community Learning Centers	$94,202
84.358	Rural Education	$46,250
10.553	School Breakfast Program	$45,325
84.027	Special Education Grants to States	$24,765
84.367	Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants)	$19,353
84.424	Student Support and Academic Enrichment Program	$11,298
10.185	Local Food for Schools Cooperative Agreement Program	$3,975
84.048	Career and Technical Education -- Basic Grants to States	$1,740