FAC Explorer

Finding 58384 (2022-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2022-12-14
Audit: 54827
Organization: Unified School District #349 Stafford, Ks (KS)
Auditor: Vonfeldt Bauer & Vonfeldt Chtd

AI Summary

  • Core Issue: There is a significant lack of segregation of duties in the accounting function due to a small number of employees.
  • Impacted Requirements: This deficiency undermines the assurance that financial statements are accurate and free from material misstatements.
  • Recommended Follow-Up: The Superintendent and Board of Education should consider this issue during their financial monitoring and review processes.

Finding Text

Significant Deficiencies: Finding 2022-001 - Lack of Segregation of Duties CONDITION: Lack of segregation of duties due to the small number of employees involved in the accounting function of the District. CRITERIA: Segregation of duties should be in place to provide reasonable assurance that the financial statement is fairly stated and free of material misstatements. CAUSE: Small number of employees in the accounting function makes proper segregation of duties impossible. POTENTIAL EFFECT OF CONDITION: Errors or irregularities could occur that would not be prevented or detected in a timely manner that would cause a misstatement of the financial statement that is more than inconsequential. RECOMMENDATION: To mitigate this deficiency we recommend that the Superintendent and Board of Education consider this condition while performing their monitoring and review of the financial statement activity and reports. CLIENT RESPONSE: The District is in agreement with this finding. The District's response is in the attached Corrective Action Plan.

Corrective Action Plan

Finding 2022-001 - Lack of Segregation of Duties The District understands that this is a significant deficiency but feels it is not cost-effective at this time to hire additional employees to properly segregate duties. We feel that the oversight performed by the Superintendent and Board of Education over the financial statement activity and reports of the District is adequate to help mitigate the lack of segregation of duties. We believe it would be inefficient and cost prohibitive to hire the additional employees needed to properly segregate duties so at this time we do not plan on making any changes. However, we will continue to monitor this situation and periodically determine if it is cost-effective for us to properly segregate duties.

Categories

Subrecipient Monitoring Internal Control / Segregation of Duties

Other Findings in this Audit

  • 58385 2022-001
    Significant Deficiency
  • 634826 2022-001
    Significant Deficiency
  • 634827 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $198,502
10.555 National School Lunch Program $158,457
84.287 Twenty-First Century Community Learning Centers $157,043
84.010 Title I Grants to Local Educational Agencies $68,175
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $55,609
10.553 School Breakfast Program $52,692
10.559 Summer Food Service Program for Children $18,993
93.558 Temporary Assistance for Needy Families $15,565
84.424 Student Support and Academic Enrichment Program $13,217
84.367 Improving Teacher Quality State Grants $10,914
84.358 Rural Education $10,256
10.582 Fresh Fruit and Vegetable Program $7,710
10.649 Pandemic Ebt Administrative Costs $614
10.558 Child and Adult Care Food Program $557
94.003 State Commissions $422
84.048 Career and Technical Education -- Basic Grants to States $393