FAC Explorer

Finding 573544 (2024-002)

Material Weakness
Requirement
ABFL
Questioned Costs
-
Year
2024
Accepted
2025-08-14
Audit: 364280
Organization: Coon Rapids-Bayard Community School District (IA)
Auditor: Nolte Cornman & Johnson PC

AI Summary

  • Core Issue: An employee has too much control over key financial areas, which risks incompatible duties.
  • Impacted Requirements: This violates the principle of segregation of duties, essential for internal controls.
  • Recommended Follow-Up: Review and adjust responsibilities to ensure proper segregation of duties in federal program management.

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; disbursements and accounting systems. See finding 2024-001.

Corrective Action Plan

The business office recently hired an HR manager that has been helping with payroll and money handling. This has helped alleviate some concerns with segregation of duties. However, we are a small school district and would have to hire more individuals to have complete segregation of duties.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1149986 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
66.045 Clean School Bus Program $378,555
10.555 National School Lunch Program $182,514
84.010 Title I Grants to Local Educational Agencies $127,310
97.067 Homeland Security Grant Program $96,600
10.553 School Breakfast Program $42,986
84.358 Rural Education $26,734
84.027 Special Education Grants to States $20,259
84.425 Education Stabilization Fund $18,555
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $12,804
84.424 Student Support and Academic Enrichment Program $11,298
93.958 Block Grants for Community Mental Health Services $10,696
10.559 Summer Food Service Program for Children $4,252
84.365 English Language Acquisition State Grants $2,479