Finding 556168 (2023-001)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2025-04-28

AI Summary

  • Core Issue: Inadequate reviewer approvals for journal entries increases risk of financial mismanagement.
  • Impacted Requirements: Violates GAAP and federal guidelines on internal controls for accurate financial reporting.
  • Recommended Follow-Up: Establish a policy for mandatory review and approval of all journal entries by management.

Finding Text

Criteria: Generally Accepted Accounting Principles (GAAP), Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), The Internal Control - Integrated Framework, published by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and numerous federal guidelines require the establishment and maintenance of internal control designed to reasonably ensure accurate financial reporting and compliance with laws, regulations and program requirements. Condition: Two out of three journal entries reviewed did not have adequate reviewer approvals. Questioned Costs: Not Applicable Proper Perspective: Systemic to the District. Effect: The lack of review and approval of journal entries leaves the District susceptible to misappropriation of funds. Cause: District oversight. Recommendation: We recommend the District implement a policy where all journal entries will be reviewed and approved by a designated member of management.

Categories

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Reporting

Other Findings in this Audit

  • 556167 2023-001
    Significant Deficiency
  • 1132609 2023-001
    Significant Deficiency
  • 1132610 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
97.083 Staffing for Adequate Fire and Emergency Response (safer) $704,968