Finding 560411 (2024-002)

Material Weakness

Requirement

ABFL

Questioned Costs

Year

2024

Accepted

2025-05-15

Audit: 356317

Organization: Westwood Community School District (IA)

Auditor: Nolte Cornman & Johnson

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 risks.

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, disbursements, inventories, payroll, receipts, financial reporting, school nutrition program and journal entries. See finding 2024-001.

Corrective Action Plan

The District will review internal control procedures and implement as current staff allows. The District did hire a 2nd secretary to hlep with of the segregation of duties such as activity cash boxes etc. in FY22.

Other Findings in this Audit

560412 2024-002

Material Weakness
1136853 2024-002

Material Weakness
1136854 2024-002

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
84.425	Education Stabilization Fund	$330,357
10.555	National School Lunch Program	$213,334
84.010	Title I Grants to Local Educational Agencies	$75,367
84.358	Rural Education	$49,119
10.553	School Breakfast Program	$46,016
84.424	Student Support and Academic Enrichment Program	$32,500
84.027	Special Education Grants to States	$24,586
84.367	Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants)	$16,383
84.048	Career and Technical Education -- Basic Grants to States	$5,774