FAC Explorer

Finding 943038 (2022-003)

Material Weakness Repeat Finding
Requirement
ABFL
Questioned Costs
-
Year
2022
Accepted
2024-02-08
Audit: 289451
Organization: East Union Community School District (IA)
Auditor: Nolte Cornman & Johnson PC

AI Summary

  • Core Issue: One employee has too much control over critical financial areas, which increases the risk of errors or fraud.
  • Impacted Requirements: This situation violates the principle of segregation of duties, essential for maintaining effective internal controls.
  • Recommended Follow-Up: Review and redistribute responsibilities to ensure no single employee manages incompatible duties.

Finding Text

One important aspect of the internal control structure is the segregation of duties among employees to prevent an individual employee from handling duties which are incompatible. We noted one individual has control over portions of one or more of the following areas for the District relating to major federal programs; cash, investments, receipts, journal entries and the school nutrition program. See finding 2022-001.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 366596 2022-003
    Material Weakness Repeat
  • 366597 2022-003
    Material Weakness Repeat
  • 943039 2022-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $327,660
10.555 National School Lunch Program $304,170
10.553 School Breakfast Program $158,447
84.010 Title I Grants to Local Educational Agencies $123,059
93.575 Child Care and Development Block Grant $75,600
84.358 Rural Education $32,719
84.048 Career and Technical Education -- Basic Grants to States $28,764
10.559 Summer Food Service Program for Children $21,389
84.367 Improving Teacher Quality State Grants $18,443
10.558 Child and Adult Care Food Program $11,749
84.424 Student Support and Academic Enrichment Program $10,000
84.027 Special Education_grants to States $4,024
10.649 Pandemic Ebt Administrative Costs $614