FAC Explorer

Finding 564276 (2024-002)

Material Weakness
Requirement
ABEILN
Questioned Costs
-
Year
2024
Accepted
2025-06-10
Audit: 358416
Organization: West Monona Community School District (IA)
Auditor: Nolte Cornman & Johnson PC

AI Summary

  • Core Issue: One employee has too much control over multiple financial areas, increasing the risk of errors or fraud.
  • Impacted Requirements: This violates the principle of segregation of duties, which is essential for effective internal controls.
  • Recommended Follow-up: Review and redistribute 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, inventories, financial reporting, school lunch program and journal entries. See finding 2024-001.

Corrective Action Plan

All nutrition money received from students will be received by secretaries. The secretaries will write up receipts and give the money to the Nutrition Assistant to be entered into the nutrition account. The superintendent will check over and sign off on monthly bank reconciliations, posted monthly journal entries, and all bank transfers.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 564277 2024-002
    Material Weakness
  • 564278 2024-002
    Material Weakness
  • 1140718 2024-002
    Material Weakness
  • 1140719 2024-002
    Material Weakness
  • 1140720 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $238,088
84.010 Title I Grants to Local Educational Agencies $164,084
21.027 Coronavirus State and Local Fiscal Recovery Funds $112,507
84.425 Education Stabilization Fund $92,012
10.553 School Breakfast Program $45,765
10.559 Summer Food Service Program for Children $34,316
84.027 Special Education Grants to States $28,624
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $23,598
84.424 Student Support and Academic Enrichment Program $16,250
84.048 Career and Technical Education -- Basic Grants to States $4,324