Finding 8970 (2023-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-01-18

AI Summary

  • Core Issue: The district lacks sufficient personnel to ensure that different employees manage separate parts of the same transaction, leading to inadequate internal controls.
  • Impacted Requirements: Internal controls must ensure that authorization, recording, and custody of assets are handled by different individuals to minimize risks of errors or fraud.
  • Recommended Follow-Up: Evaluate the feasibility of segregating duties among employees to enhance internal controls, balancing costs against potential benefits.

Finding Text

MATERIAL WEAKNESS 2023-002 Internal Control Structure Design Program: Elementary & Secondary School Emergency Relief # 84.425 Condition: Adequate personnel are not available to assign responsibilities in such a way that different employees handle different parts of the same transaction. Cause: District has limited number of personnel. Criteria: Internal controls should be in place that provides reasonable assurance that authorization or approval of transactions, recording of transactions, and custody of assets are segregated activities. Effect: Due to the absence of segregation of duties, the level of risk that errors or irregularities, material in relation to the financial statements, may occur and not be detected within a timely period by the employees, in the normal course of performing their assigned functions, has not been reduced to a relatively low level. Recommendation: While considering the cost of any benefits derived, activities should be segregated and handled by different employees. Questioned Costs: $0.00 Grantee Response/Corrective Action Plan: The cost of implementing a complete set of controls far outweighs the benefits derived by such. It is not financially feasible to have a complete set of controls.

Corrective Action Plan

October 25, 2023 School District No. 27-0595, North Bend, Nebraska, respectfully submits the following corrective action plan for the year ended August 31, 2023. Name and address of independent public accounting firm: Romans, Wiemer & Associates, Certified Public Accountants, P.C., 1910 N Lincoln Ave, York, NE 68467 Audit Period: September 1, 2022 through August 31, 2023 The findings from the October 25, 2023 schedule of findings and questioned cost are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS 2023-001 Internal Control Structure Design Recommendation: While considering the cost of any benefits derived, activities should be segregated and handled by different employees. Action Taken: The cost of implementing a complete set of controls far outweighs the benefits derived by such. It is not financially feasible to have a complete set of controls. FINDINGS – FEDERAL AWARD PROGRAM AUDIT Nebraska Department of Education 2023-002 Internal Control Structure Design Recommendation: While considering the cost of any benefits derived, activities should be segregated and handled by different employees. Action Taken: The cost of implementing a complete set of controls far outweighs the benefits derived by such. It is not financially feasible to have a complete set of controls. If the Nebraska Department of Education has questions regarding this plan, please call the District at (402) 652-3268.

Categories

Internal Control / Segregation of Duties Material Weakness

Other Findings in this Audit

  • 585412 2023-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $495,245
84.010 Title I Grants to Local Educational Agencies $121,595
84.358 Rural Education $46,588
10.555 National School Lunch Program $35,729
10.553 School Breakfast Program $21,298
93.778 Medical Assistance Program $16,183
84.027 Special Education_grants to States $8,237
84.173 Special Education_preschool Grants $809
84.367 Improving Teacher Quality State Grants $9