FAC Explorer

Finding 584787 (2023-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-01-12
Audit: 11161
Organization: Community Unit School District No. 1 (IL)
Auditor: Gray Hunter Stenn LLP

AI Summary

  • Core Issue: The school district lacks adequate segregation of duties, increasing the risk of errors and fraud.
  • Impacted Requirements: Limited staff means one bookkeeper handles multiple roles, such as preparing checks and reconciling bank statements.
  • Recommended Follow-Up: The superintendent and board should closely supervise accounting processes to catch any potential issues early.

Finding Text

THE SCHOOL DISTRICT'S OFFICE DOES NOT HAVE AN ADEQUATE SEGREGATION OF DUTIES IN CERTAIN AREAS CONSISTENT WITH CONTROL OBJECTIVES. THE LIMITED NUMBER OF INDIVIDUALS TO SHARE RESPONSIBILITIES FOR ACCESS TO ASSETS AND ACCOUNTING RECORDS MAKES IT DIFFICULT TO MITIGATE THE CONTROL WEAKNESS. THE BOOKKEEPER IS INVOLVED IN MANY ASPECTS OF A TRANSACTION. FOR EXAMPLE, IN CASH DISBURSEMENTS THE BOOKKEEPER PREPARES THE CHECK, RECORDS THE TRANSACTIONS, AND PREPARES THE BANK RECONCILIATION. THE BOOKKEEPER PERFORMED MOST OF THE ACCOUNTING FUNCTIONS, RESULTING IN A LACK OF SEGREGATION OF DUTIES. THE CAUSE OF THE FINDING IS LIMITED ACCOUNTING STAFF TO SEPARATE THE DIFFERENT ACCOUNTING FUNCTIONS. WE RECOMMND THE SUPERINTENDENT AND THE BOARD OF EDUCATION CLOSELY SUPERVISE AND REVIEW ACCOUNTING INFORMATION AS THE BEST WAY TO PREVENT OR DETECT ERRORS OR IRREGULARITIES. MANAGEMENT AGREES WITH THE FINDING AND WILL CONTINUE OVERSIGHT RESPONSIBILITY.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 8332 2023-001
    Significant Deficiency Repeat
  • 8333 2023-001
    Significant Deficiency Repeat
  • 8334 2023-001
    Significant Deficiency Repeat
  • 8335 2023-001
    Significant Deficiency Repeat
  • 8336 2023-001
    Significant Deficiency Repeat
  • 8337 2023-001
    Significant Deficiency Repeat
  • 8338 2023-001
    Significant Deficiency Repeat
  • 8339 2023-001
    Significant Deficiency Repeat
  • 8340 2023-001
    Significant Deficiency Repeat
  • 8341 2023-001
    Significant Deficiency Repeat
  • 8342 2023-001
    Significant Deficiency Repeat
  • 8343 2023-001
    Significant Deficiency Repeat
  • 8344 2023-001
    Significant Deficiency Repeat
  • 8345 2023-001
    Significant Deficiency Repeat
  • 8346 2023-001
    Significant Deficiency Repeat
  • 8347 2023-001
    Significant Deficiency Repeat
  • 8348 2023-001
    Significant Deficiency Repeat
  • 8349 2023-001
    Significant Deficiency Repeat
  • 8350 2023-001
    Significant Deficiency Repeat
  • 8351 2023-001
    Significant Deficiency Repeat
  • 8352 2023-002
    Significant Deficiency Repeat
  • 584774 2023-001
    Significant Deficiency Repeat
  • 584775 2023-001
    Significant Deficiency Repeat
  • 584776 2023-001
    Significant Deficiency Repeat
  • 584777 2023-001
    Significant Deficiency Repeat
  • 584778 2023-001
    Significant Deficiency Repeat
  • 584779 2023-001
    Significant Deficiency Repeat
  • 584780 2023-001
    Significant Deficiency Repeat
  • 584781 2023-001
    Significant Deficiency Repeat
  • 584782 2023-001
    Significant Deficiency Repeat
  • 584783 2023-001
    Significant Deficiency Repeat
  • 584784 2023-001
    Significant Deficiency Repeat
  • 584785 2023-001
    Significant Deficiency Repeat
  • 584786 2023-001
    Significant Deficiency Repeat
  • 584788 2023-001
    Significant Deficiency Repeat
  • 584789 2023-001
    Significant Deficiency Repeat
  • 584790 2023-001
    Significant Deficiency Repeat
  • 584791 2023-001
    Significant Deficiency Repeat
  • 584792 2023-001
    Significant Deficiency Repeat
  • 584793 2023-001
    Significant Deficiency Repeat
  • 584794 2023-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Elementary and Secondary School Emergency Relief Grant III Covid 19 $317,429
10.553 National School Lunch $177,343
84.173 Federal Special Ed Idea Arp $171,074
10.553 National School Breakfast $36,370
84.367 Title II $32,899
84.358 Rural Education $32,034
10.555 Commodities $27,322
84.425 Elementary and Secondary School Emergency Relief Grant Id Covid 19 $25,561
84.425 Elementary and Secondary School Emergency Relief Grant II Covid 19 $15,720
84.010 Title I Low Income $14,638
93.778 Medical Assistance Program $13,116
84.027 Federal Special Ed Idea Preschool $7,219
84.010 Title I School Improvement $6,992
84.425 Elementary and Secondary School Emergency Relief Grant I Covid 19 $6,699
84.424 Title IV Student Support $2,140
84.425 Elementary and Secondary School Emergency Relief Grant Ps Covid 19 $1,029
84.425 Elementary and Secondary School Emergency Relief Grant Digital Equity Covid 19 $900