FAC Explorer

Finding 571428 (2024-002)

Material Weakness
Requirement
ABL
Questioned Costs
-
Year
2024
Accepted
2025-07-16
Audit: 362355
Organization: Albia Community School District (IA)
Auditor: Nolte Cornman & Johnson PC

AI Summary

  • Core Issue: One employee has control over multiple incompatible duties, which increases the risk of errors or fraud.
  • Impacted Requirements: This situation violates the principle of segregation of duties necessary for effective internal controls.
  • Recommended Follow-Up: Review and reassign responsibilities to ensure proper segregation of duties across cash, investments, and financial reporting.

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, capital assets and financial reporting.

Corrective Action Plan

The District will continue to review duties and procedures throughout all fiscal services to improve segregation of duty procedures. We have made changes internally that shift responsibilities between the Business Manage and Office Manager which provides an additional person having responsibilities with investments, cash, and the overall financial reporting.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 571429 2024-002
    Material Weakness Repeat
  • 571430 2024-002
    Material Weakness Repeat
  • 571431 2024-002
    Material Weakness Repeat
  • 1147870 2024-002
    Material Weakness
  • 1147871 2024-002
    Material Weakness Repeat
  • 1147872 2024-002
    Material Weakness Repeat
  • 1147873 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $289,702
84.010 Title I Grants to Local Educational Agencies $271,295
10.553 School Breakfast Program $81,386
10.559 Summer Food Service Program for Children $64,111
84.027 Special Education Grants to States $50,824
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $37,518
84.425 Education Stabilization Fund $30,499
84.424 Student Support and Academic Enrichment Program $14,846
84.048 Career and Technical Education -- Basic Grants to States $12,182
10.556 Special Milk Program for Children $3,180
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1,703