Finding Text
2023-004: Material Weakness: Lack of Review on Reports
U.S. Department of Education
Education Stabilization Fund
Passed through State of Iowa Department of Education
Federal Assistance Listing Number (ALN): 84.425D, 84.425U, 84.425W
Federal Award Year: 2023
Finding: Required reports for the Education Stabilization Fund were not reviewed and approved by an individual other than the preparer prior to submission.
Criteria: A proper internal control structure would include segregation of duties and would ensure that reports are reviewed by an individual other than the preparer prior to submission.
Condition: The Education Stabilization Fund requires that certain reports are submitted to the granting agency. The reports selected for testing were filed timely and there were no inaccuracies identified on the reports. However, the reports were prepared and submitted by the same employee and no independent review took place prior to submission.
Cause: A lack of segregation of duties over the process of reporting for this program.
Effect or potential effect: A lack of reviews could lead to inaccuracies in reporting.
Questioned costs: None.
Context: For all four reports tested, the District could not provide evidence supporting that the reports had been reviewed and approved by someone other than the preparer.
Identification as a repeat finding, if applicable: Not a repeat finding.
Recommendation: We recommend the District implement procedures to ensure proper segregation of duties is achieved in the preparation of required reports.
Views of responsible officials: Management agrees with the finding.