Finding 609472 (2022-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-02-07

AI Summary

  • Core Issue: Limited staff size leads to inadequate segregation of duties, increasing the risk of errors or fraud.
  • Impacted Requirements: Internal controls for proper segregation of duties are not being met.
  • Recommended Follow-Up: Implement procedures to separate duties among employees, while management should stay informed about operational matters.

Finding Text

Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The limited size of the District?s office staff prevents the ideal separation of functions. The bookkeeper prints payroll checks, sends payroll files to the bank, and has access to the password to print electronic signatures. The Business Manager has access to manual checkbooks, has access to the stamped signatures, and is involved in the bank reconciliation process. Criteria: Internal controls should be in place that provide adequate segregation of duties. Effect: Failure to properly segregate duties may allow for errors or irregularities to occur and not be detected in a timely manner by employees in the normal course of performing their assigned functions. Cause: Limited number of personnel. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Board reviews and approves all expenditures on a monthly basis, and the Business Manager reviews the payroll files prior to payroll processing.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 33030 2022-001
    Material Weakness Repeat
  • 33031 2022-004
    Material Weakness Repeat
  • 33032 2022-001
    Material Weakness Repeat
  • 33033 2022-004
    Material Weakness Repeat
  • 33034 2022-001
    Material Weakness Repeat
  • 33035 2022-004
    Material Weakness Repeat
  • 33036 2022-001
    Material Weakness Repeat
  • 33037 2022-004
    Material Weakness Repeat
  • 33038 2022-001
    Material Weakness Repeat
  • 33039 2022-004
    Material Weakness Repeat
  • 33040 2022-005
    Material Weakness Repeat
  • 33041 2022-001
    Material Weakness Repeat
  • 33042 2022-004
    Material Weakness Repeat
  • 33043 2022-005
    Material Weakness Repeat
  • 33044 2022-001
    Material Weakness Repeat
  • 33045 2022-004
    Material Weakness Repeat
  • 33046 2022-005
    Material Weakness Repeat
  • 609473 2022-004
    Material Weakness Repeat
  • 609474 2022-001
    Material Weakness Repeat
  • 609475 2022-004
    Material Weakness Repeat
  • 609476 2022-001
    Material Weakness Repeat
  • 609477 2022-004
    Material Weakness Repeat
  • 609478 2022-001
    Material Weakness Repeat
  • 609479 2022-004
    Material Weakness Repeat
  • 609480 2022-001
    Material Weakness Repeat
  • 609481 2022-004
    Material Weakness Repeat
  • 609482 2022-005
    Material Weakness Repeat
  • 609483 2022-001
    Material Weakness Repeat
  • 609484 2022-004
    Material Weakness Repeat
  • 609485 2022-005
    Material Weakness Repeat
  • 609486 2022-001
    Material Weakness Repeat
  • 609487 2022-004
    Material Weakness Repeat
  • 609488 2022-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education_grants to States $196,565
84.010 Title I Grants to Local Educational Agencies $166,540
84.425 Education Stabilization Fund $91,502
93.778 Medical Assistance Program $58,534
10.553 School Breakfast Program $47,392
10.555 National School Lunch Program $30,363
84.367 Improving Teacher Quality State Grants $25,292
84.358 Rural Education $19,979
32.009 Emergency Connectivity Fund Program $14,800
10.559 Summer Food Service Program for Children $12,278
84.424 Student Support and Academic Enrichment Program $12,132
84.173 Special Education_preschool Grants $11,056
84.048 Career and Technical Education -- Basic Grants to States $5,656
10.649 Pandemic Ebt Administrative Costs $614