Finding 8633 (2023-002)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-01-16

AI Summary

  • Core Issue: The small size of the accounting department limits the ability to separate duties, increasing the risk of undetected errors or irregularities.
  • Impacted Requirements: Internal controls related to asset protection, compliance, personnel evaluation, and accurate data are compromised.
  • Recommended Follow-Up: The Board should acknowledge the heightened risk and consider enhancing monitoring and compensating controls to mitigate potential issues.

Finding Text

Criteria: An effective internal control structure of an organization will include procedures and actions to:1. Protect its assets against theft and waste2. Ensure compliance with the organization's policies, procedures and statutory requirements3. Evaluate the performance of personnel to promote efficient operations4. Ensure accurate and reliable operating and accounting data. Separation of duties requires that someone other than the employee responsible for safeguarding the asset must maintain the accounting records for that asset. When an organization separates duties of the employees, it minimizes the probability of an error or irregularity occurring and not being timely detectedCondition: Due to the small size of the accounting department of the District, the possibility of adequate separation of duties over certain transaction cycles is limited. Recommendation: While we recognize that it is impractical for the District to achieve complete separation of duties over all transaction cycles within the District, it is important that the Board be aware of the chance of errors and irregularities not being timely detected is elevated. Auditee Response: The District has separated duties to the extent possible and has implemented compensating controls to monitor the accounting activities.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 8632 2023-002
    Significant Deficiency
  • 8634 2023-002
    Significant Deficiency
  • 8635 2023-002
    Significant Deficiency
  • 8636 2023-003
    -
  • 8637 2023-003
    -
  • 8638 2023-003
    -
  • 585074 2023-002
    Significant Deficiency
  • 585075 2023-002
    Significant Deficiency
  • 585076 2023-002
    Significant Deficiency
  • 585077 2023-002
    Significant Deficiency
  • 585078 2023-003
    -
  • 585079 2023-003
    -
  • 585080 2023-003
    -

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $1.73M
84.010 Title I Grants to Local Educational Agencies $350,636
84.287 Twenty-First Century Community Learning Centers $177,591
84.367 Improving Teacher Quality State Grants $93,688
84.424 Student Support and Academic Enrichment Program $52,863
84.027 Special Education_grants to States $44,483
84.371 Striving Readers $39,315
10.555 National School Lunch Program $29,391
10.553 School Breakfast Program $28,136
84.048 Career and Technical Education -- Basic Grants to States $23,945
84.173 Special Education_preschool Grants $4,278