Finding 79232 (2022-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-03-23

AI Summary

  • Core Issue: The District did not prepare necessary adjusting journal entries before the audit, leading to potential inaccuracies in financial reports.
  • Impacted Requirements: Failure to reconcile accounts timely can result in undetected errors and is considered an internal control weakness.
  • Recommended Follow-Up: Implement policies to ensure timely recording of account balances and reduce reliance on material adjustments.

Finding Text

Finding #2022-003 ? Material Adjustments (Prior Year Finding #2021-003) Condition: Material adjusting journal entries not prepared by the District before the audit were required to record and reconcile account balances. Effect: Financial reports generated by the accounting system may not provide an accurate reflection of the District?s financial position or activities. Not reconciling accounts on a timely basis could lead to errors or other problems not being recognized and resolved. Cause: Financial information was not recorded in a timely manner and material adjustments were needed in order to correct various transactions. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the materiality of adjusting journal entries proposed by the auditor. To assist with business operations, the District contracted for additional business office services for the 2022/2023 school year.

Corrective Action Plan

Finding #2022-003 ? Material Adjustments (Prior Year Finding #2021-003) Condition: Material adjusting journal entries not prepared by the District before the audit were required to record and reconcile account balances. Effect: Financial reports generated by the accounting system may not provide an accurate reflection of the District?s financial position or activities. Not reconciling accounts on a timely basis could lead to errors or other problems not being recognized and resolved. Cause: Financial information was not recorded in a timely manner and material adjustments were needed in order to correct various transactions. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the materiality of adjusting journal entries proposed by the auditor. To assist with business operations, the District contracted for additional business office services for the 2022/2023 school year. Contact Person: Robert Antholine, Phone number: 262-537-2211, Email: rantholine@randall.k12.wi.us Anticipated Completion: June 30, 2023

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 79231 2022-001
    Material Weakness Repeat
  • 79233 2022-004
    Material Weakness Repeat
  • 79234 2022-005
    Material Weakness
  • 79235 2022-006
    Significant Deficiency
  • 79236 2022-001
    Material Weakness Repeat
  • 79237 2022-003
    Material Weakness Repeat
  • 79238 2022-004
    Material Weakness Repeat
  • 79239 2022-005
    Material Weakness
  • 79240 2022-006
    Significant Deficiency
  • 655673 2022-001
    Material Weakness Repeat
  • 655674 2022-003
    Material Weakness Repeat
  • 655675 2022-004
    Material Weakness Repeat
  • 655676 2022-005
    Material Weakness
  • 655677 2022-006
    Significant Deficiency
  • 655678 2022-001
    Material Weakness Repeat
  • 655679 2022-003
    Material Weakness Repeat
  • 655680 2022-004
    Material Weakness Repeat
  • 655681 2022-005
    Material Weakness
  • 655682 2022-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $282,411
84.027 Special Education_grants to States $125,381
10.553 School Breakfast Program $94,588
93.778 Medical Assistance Program $57,455
84.010 Title I Grants to Local Educational Agencies $52,514
10.555 National School Lunch Program $25,895
84.424 Student Support and Academic Enrichment Program $22,000
84.367 Improving Teacher Quality State Grants $16,845
84.173 Special Education_preschool Grants $5,447
10.649 Pandemic Ebt Administrative Costs $614