FAC Explorer

Finding 572042 (2024-003)

Material Weakness
Requirement
ABL
Questioned Costs
-
Year
2024
Accepted
2025-07-28
Audit: 363152
Organization: Centerville Community School District (IA)
Auditor: Nolte Cornman & Johnson PC

AI Summary

  • Core Issue: One employee has too much control over critical financial areas, which increases the risk of errors or fraud.
  • Impacted Requirements: This situation violates the principle of segregation of duties, essential for effective internal controls.
  • Recommended Follow-Up: Review and adjust responsibilities to ensure that 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 and journal entries. See finding 2024-001.

Corrective Action Plan

The District continues to have a limited number of office employees. The District will attempt, with advice from the auditors, to segregate duties as much as reasonably possible with limited office personnel. In June of 2024, the District did add one more person to the Business Office. This will help further to segregate duties.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 572043 2024-003
    Material Weakness Repeat
  • 572044 2024-003
    Material Weakness Repeat
  • 1148484 2024-003
    Material Weakness
  • 1148485 2024-003
    Material Weakness Repeat
  • 1148486 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $476,158
84.425 Education Stabilization Fund $381,737
10.555 National School Lunch Program $364,133
10.553 School Breakfast Program $78,207
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $65,335
84.027 Special Education Grants to States $63,804
10.559 Summer Food Service Program for Children $37,109
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $33,789
84.424 Student Support and Academic Enrichment Program $30,062
84.048 Career and Technical Education -- Basic Grants to States $23,890
21.027 Coronavirus State and Local Fiscal Recovery Funds $11,399