Finding 597834 (2022-001)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-01-01

AI Summary

  • Core Issue: Limited personnel hindered proper segregation of duties in accounting functions.
  • Impacted Requirements: Procedures for recording, authorizing, and custody were not adequately established, risking misstatements.
  • Recommended Follow-Up: The Board should monitor internal controls and ensure compensating controls are in place to safeguard assets and ensure timely transaction recording.

Finding Text

2022-01 - Segregation of Duties Condition: Due to the limited number of personnel, a segregation of certain accounting functions was not possible. Criteria: The District continues to establish procedures that would ensure proper segregation of certain accounting functions, especially, to limit the functions of recording, authorizing and custody. Effect: As a result, during the audit period, operation of procedures might not have allowed management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. Cause: The District has limited resources and personnel in the responsibilities and business function. Recommendation: We recommend that the Board of Trustees continue to monitor the internal accounting control procedures in use to assure that compensating controls are being utilized to provide assurance that assets are safeguarded and transactions are proper and recorded in a timely manner. These actions would mitigate, but not eliminate the risk of misstatement or misappropriation. Contact: Superintendent Timeframe: Ongoing

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 21391 2022-001
    Significant Deficiency
  • 21392 2022-001
    Significant Deficiency
  • 597833 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.041 Impact Aid $1.37M
84.425 Education Stabilization Fund $266,167
10.555 National School Lunch Program $180,565
84.010 Title I Grants to Local Educational Agencies $117,104
15.437 Minerals Leasing Act $32,970
10.553 School Breakfast Program $31,906
84.048 Career and Technical Education -- Basic Grants to States $23,906
15.438 National Forest Acquired Lands $22,083
10.565 Commodity Supplemental Food Program $18,000
84.424 Student Support and Academic Enrichment Program $10,000
15.433 Flood Control Act Lands $6,684
84.367 Improving Teacher Quality State Grants $2,470