Finding 564448 (2024-002)

Material Weakness

Requirement

ABFL

Questioned Costs

Year

2024

Accepted

2025-06-11

Audit: 358582

Organization: Logan-Magnolia Community School District (IA)

Auditor: Nolte Cornman & Johnson PC

AI Summary

Core Issue: One employee has control over multiple incompatible duties, increasing the risk of errors or fraud.
Impacted Requirements: Segregation of duties is not being properly enforced in key areas like cash management and financial reporting.
Recommended Follow-Up: Implement stronger controls to ensure duties are divided among different employees to enhance accountability.

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 federal programs; cash, investments, receipts, financial reporting, computer systems and school lunch program. See finding 2024-001

Corrective Action Plan

Segregation of Duties will always be an issue in a small district. However, the district continues to constantly reevaluate internal controls and tests to ensure compliance with these controls.

Other Findings in this Audit

1140890 2024-002

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
66.045	Clean School Bus Program	$1.97M
10.555	National School Lunch Program	$182,486
84.010	Title I Grants to Local Educational Agencies	$78,862
21.027	Coronavirus State and Local Fiscal Recovery Funds	$37,665
93.575	Child Care and Development Block Grant	$28,000
84.027	Special Education Grants to States	$27,889
10.553	School Breakfast Program	$19,703
84.367	Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants)	$15,537
84.424	Student Support and Academic Enrichment Program	$10,000
84.048	Career and Technical Education -- Basic Grants to States	$6,123
16.839	Stop School Violence	$1,250