FAC Explorer

Finding 555096 (2024-002)

Material Weakness Repeat Finding
Requirement
ABEILN
Questioned Costs
-
Year
2024
Accepted
2025-04-15
Audit: 353680
Organization: Mid-Prairie Community School District (IA)
Auditor: Nolte Cornman & Johnson PC

AI Summary

  • Core Issue: One employee has too much control over critical financial areas, risking incompatible duties.
  • Impacted Requirements: This affects compliance with internal control standards for major federal programs.
  • Recommended Follow-Up: Implement proper segregation of duties to enhance internal controls and reduce risk.

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, inventories, receipts, payroll, disbursements, financial reporting, computer systems and journal entries. See finding 2024-001.

Corrective Action Plan

The District has implemented additional controls such as mandatory vacations for accounting staff and the engagement of an independent accounting professional who performs unannounced reviews of the current activities and processes cited above, as well as reviewing the workflow and work area, including electronic and paper files and correspondence of each employee while on their mandatory vacation. Written reports are provided to the Superintendent after each review visit and added to the employee’s personnel file. The District will continue to review internal controls and explore alternatives to improve segregation of duties. It is recognized that due to the size of Central Office staff and budget constraints that many of the segregation of duties issues may continue.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 555097 2024-002
    Material Weakness Repeat
  • 555098 2024-002
    Material Weakness Repeat
  • 1131538 2024-002
    Material Weakness Repeat
  • 1131539 2024-002
    Material Weakness Repeat
  • 1131540 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $351,925
84.010 Title I Grants to Local Educational Agencies $340,028
84.425 Education Stabilization Fund $73,678
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $66,256
84.027 Special Education Grants to States $55,856
10.553 School Breakfast Program $34,132
84.048 Career and Technical Education -- Basic Grants to States $27,427
84.424 Student Support and Academic Enrichment Program $21,696