Finding 572203 (2024-002)

Material Weakness Repeat Finding
Requirement
ABEILN
Questioned Costs
-
Year
2024
Accepted
2025-07-30

AI Summary

  • Core Issue: One employee has too much control over critical financial areas, risking incompatible duties.
  • Impacted Requirements: This affects compliance with internal control standards for major federal programs.
  • Recommended Follow-Up: Implement proper segregation of duties to enhance oversight and reduce risk.

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, manual journal entries and computer systems. See finding 2024‑001.

Corrective Action Plan

We recognize the importance of strong internal controls and understand the concerns around segregation of duties. Due to our limited staffing, complete segregation isn't always feasible. However, we’ve implemented compensating controls such as increased oversight by supervisors, regular review of transactions, and board-level monitoring where appropriate. Additionally, we are aware of an upcoming retirement and plan to re-evaluate and revise our internal procedures at that time to strengthen controls and improve segregation of duties where possible.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 572204 2024-002
    Material Weakness Repeat
  • 572205 2024-002
    Material Weakness Repeat
  • 572206 2024-002
    Material Weakness Repeat
  • 1148645 2024-002
    Material Weakness Repeat
  • 1148646 2024-002
    Material Weakness Repeat
  • 1148647 2024-002
    Material Weakness Repeat
  • 1148648 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $381,103
84.010 Title I Grants to Local Educational Agencies $197,225
84.425 Education Stabilization Fund $87,833
10.553 School Breakfast Program $69,777
84.027 Special Education Grants to States $46,412
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $28,579
93.575 Child Care and Development Block Grant $24,908
84.424 Student Support and Academic Enrichment Program $12,281
84.048 Career and Technical Education -- Basic Grants to States $9,148
10.559 Summer Food Service Program for Children $5,728