Finding 61700 (2022-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-03-22
Audit: 57192
Organization: Dowling Catholic High School (IA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The High School lacks an effective internal control system for preparing the Schedule of Expenditures of Federal Awards.
  • Impacted Requirements: Proper financial reporting controls are necessary to ensure accurate preparation of the Schedule.
  • Recommended Follow-Up: Management should enhance awareness of financial reporting requirements and strengthen internal controls related to the Schedule.

Finding Text

U.S. Department of Agriculture Child Nutrition Cluster Federal Financial Assistance Listing #10.555 Other Material Weakness in Internal Control Over Compliance Preparation of Schedule of Expenditures of Federal Awards Criteria: Proper controls over financial reporting include the ability to prepare the Schedule of Expenditures of Federal Awards (Schedule) and accompanying notes to the Schedule. Condition: The High School does not have an internal control system designed to provide for the preparation of the Schedule. As auditors, we were requested to assist with the preparation of the Schedule. Cause: Auditor assistance with preparation of the Schedule is not unusual as the Schedule has unique and specialized requirements and preparation is only required when the High School meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the High School would not be able to draft the Schedule that is correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the High School?s Schedule of Expenditures of Federal Awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.

Categories

Reporting Material Weakness School Nutrition Programs

Other Findings in this Audit

  • 61699 2022-001
    Material Weakness
  • 638141 2022-001
    Material Weakness
  • 638142 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $74,595
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $28,503