FAC Explorer

Finding 571996 (2024-002)

Material Weakness
Requirement
ABEILN
Questioned Costs
-
Year
2024
Accepted
2025-07-28
Audit: 363095
Organization: South O'Brien Community School District (IA)
Auditor: Nolte Cornman & Johnson PC

AI Summary

  • Answer: The District failed to separate duties for handling revenue, which includes federal program funds.
  • Trend: This lack of segregation increases the risk of errors and fraud in financial reporting.
  • List: Review and implement proper controls to ensure duties are divided among staff for better accountability.

Finding Text

The District did not properly segregate custody, record-keeping and reconciling functions for revenues, including those related to federal programs. See finding 2024-001.

Corrective Action Plan

As a small district, we continue to monitor segregation of duties to the best of our abilities. Staff is limited, and with limited increases to state funding, segregating duties is difficult. The Superintendent and Board will continue to review the District’s financials, accounts payable, and payroll statements and reports. The District has also sought to increase operational sharing opportunities in fiscal year 2026 and beyond that could improve segregation of duties.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 571997 2024-002
    Material Weakness
  • 571998 2024-002
    Material Weakness
  • 571999 2024-002
    Material Weakness
  • 572000 2024-002
    Material Weakness
  • 1148438 2024-002
    Material Weakness
  • 1148439 2024-002
    Material Weakness
  • 1148440 2024-002
    Material Weakness
  • 1148441 2024-002
    Material Weakness
  • 1148442 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $192,493
84.010 Title I Grants to Local Educational Agencies $127,610
10.553 School Breakfast Program $42,227
84.358 Rural Education $39,510
84.425 Education Stabilization Fund $29,163
93.575 Child Care and Development Block Grant $28,000
84.027 Special Education Grants to States $27,421
10.559 Summer Food Service Program for Children $26,478
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $20,580
84.424 Student Support and Academic Enrichment Program $11,198
84.048 Career and Technical Education -- Basic Grants to States $5,535
21.027 Coronavirus State and Local Fiscal Recovery Funds $2,422
15.659 National Wildlife Refuge Fund $367