FAC Explorer

Finding 571735 (2024-002)

Significant Deficiency
Requirement
Activities Allowed/Unallowed
Questioned Costs
-
Year
2024
Accepted
2025-07-22
Audit: 362740
Organization: Addison School District No. 4 (IL)
Auditor: Lauterbach & Amen LLP

AI Summary

  • Core Issue: Significant audit adjustments were needed to ensure accurate financial statements.
  • Impacted Requirements: Internal controls should ensure all account balances are accurate before audits.
  • Recommended Follow-Up: Review and adjust general ledger balances to improve budgeting and management; the Assistant Superintendent will oversee this process.

Finding Text

Condition: During audit fieldwork, our testing resulted in significant audit adjustments in order to present materially accurate financial statements. Criteria: A good system of internal controls would provide for accurate representations of adjusted account balances for all District accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required in order to accurately present the District’s financial statements. Effect: The District’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is the review and subsequent adjustment of general ledger balances. This review and adjustment will aid in the appropriate budgeting and management of the District’s financial activities and resources. Corrective Action Plan: The Assistant Superintendent of Business, along with staff, will review year-end adjustments as part of the audit preparation process and work to reduce the number of entries proposed by the auditors and prepare fully adjusted financial statements prior to audit fieldwork.

Corrective Action Plan

Plan: The Assistant Superintendent of Business, along with staff, will review year-end adjustments as part of the audit preparation process and work to reduce the number of entries proposed by the auditors and prepare fully adjusted financial statements prior to audit fieldwork. Anticipated Date of Completion: June of 2025 Name of Contact Person: Melissa Morgese, Assistant Superintendent of Business Management Response: Management is actively working to reduce audit adjustments. A comprehensive review of the year-end closeout process has been initiated, and staff are receiving additional training on accrual entries and reconciliation procedures. The district has also adopted a pre-audit checklist to ensure all material transactions and adjustments are recorded prior to audit fieldwork.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 571734 2024-001
    Material Weakness
  • 571736 2024-003
    Significant Deficiency Repeat
  • 571737 2024-004
    Significant Deficiency
  • 571738 2024-005
    Significant Deficiency
  • 571739 2024-006
    Significant Deficiency
  • 1148176 2024-001
    Material Weakness
  • 1148177 2024-002
    Significant Deficiency
  • 1148178 2024-003
    Significant Deficiency Repeat
  • 1148179 2024-004
    Significant Deficiency
  • 1148180 2024-005
    Significant Deficiency
  • 1148181 2024-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education_grants to States $1.06M
84.010 Title I Grants to Local Educational Agencies $793,222
10.553 School Breakfast Program $700,980
84.377 School Improvement Grants $325,622
93.778 Medical Assistance Program $154,731
84.367 Improving Teacher Quality State Grants $131,306
10.555 National School Lunch Program $90,858
10.555 Dod Fresh Fruit $70,858
10.555 Non-Cash Commodities $52,631
84.173 Special Education_preschool Grants $48,413
84.425 Education Stabilization Fund $29,820
84.365 English Language Acquisition State Grants $9,600
10.649 Pandemic Ebt Administrative Costs $3,256