Finding 605921 (2022-002)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-01-10
Audit: 24476

AI Summary

  • Core Issue: The District lacks trained staff to prepare financial statements in line with GAAP, risking material misstatements.
  • Impacted Requirements: Internal controls over financial reporting and compliance with GAAP are not effectively established.
  • Recommended Follow-Up: Provide GAAP training for accounting personnel to enhance internal controls and accuracy in financial reporting.

Finding Text

Material Weakness ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: The District is responsible for establishing and maintaining internal control and for the fair presentation of the District?s financial statements, disclosures, supplementary information, schedule of expenditures of federal awards, and schedule of state financial assistance in conformity with generally accepted accounting principles (GAAP) of the United States. Condition: The potential exists that a material misstatement of the District?s financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance could occur and not be prevented or detected by the District?s internal control. Cause: The District does not have staff trained to prepare GAAP financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance. Effect: The District engages the audit firm to prepare drafts of its financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance in accordance with GAAP based on information and trial balances provided by the District. Recommendation: The District should consider providing training on GAAP to accounting personnel.

Categories

Reporting Material Weakness

Other Findings in this Audit

  • 29478 2022-001
    Material Weakness
  • 29479 2022-002
    Material Weakness
  • 29480 2022-001
    Material Weakness
  • 29481 2022-002
    Material Weakness
  • 29482 2022-001
    Material Weakness
  • 29483 2022-002
    Material Weakness
  • 605920 2022-001
    Material Weakness
  • 605922 2022-001
    Material Weakness
  • 605923 2022-002
    Material Weakness
  • 605924 2022-001
    Material Weakness
  • 605925 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $386,717
84.425 Education Stabilization Fund $286,152
84.027 Special Education_grants to States $238,937
10.553 School Breakfast Program $107,325
84.010 Title I Grants to Local Educational Agencies $106,104
93.778 Medical Assistance Program $51,821
21.027 Coronavirus State and Local Fiscal Recovery Funds $19,067
84.367 Improving Teacher Quality State Grants $14,810
84.424 Student Support and Academic Enrichment Program $10,454
84.173 Special Education_preschool Grants $8,129