Finding 9578 (2023-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-01-24
Audit: 13269
Organization: Verona R-Vii School District (MO)
Auditor: The CPA Group PC

AI Summary

  • Core Issue: Limited personnel prevents proper segregation of incompatible duties, risking errors in financial reporting.
  • Impacted Requirements: The District fails to meet the standard of ensuring no single employee has access to both physical assets and related accounting records.
  • Recommended Follow-Up: Management should acknowledge the segregation issue and consider alternative controls or training to mitigate risks despite personnel constraints.

Finding Text

Condition: Because of a limited number of available personnel, it is not always possible to adequately segregate certain incompatible duties so that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. The District has one full time bookkeeper, and accounts payable position to handle the accounting needs of the district. There are some mitigating controls in place but it is not possible to have segregation in all areas. Criteria: The District should be segregated so that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Effect: Risk is present that errors or irregularities in amounts that would be material to the basic financial statements may occur and not be detected within a timely period by employees in the normal course of preforming their assigned functions. Recommendation: Because of limited resources and personnel, management may not be able to achieve a proper segregation of duties; however, our professional standards require that we bring this lack of segregation of duties to your attention in this report. Views of responsible officials and planned corrective actions: The limited number of available personnel prohibits segregation of incompatible duties and the district does not have the resources to hire additional accounting personnel.

Corrective Action Plan

CORRECTIVE ACTION PLAN August 14, 2023 U.S. DEPARTMENT OF EDUCATION UNITED STATES DEPARTMENT OF AGRICULTURE Verona School District R-VII respectfully submits the following corrective action plan for the year ended June 30, 2023. Contact information for the individual responsible for the corrective action: Dr. Tony Simmons, Superintendent Verona School District R-VII 101 E Ella Street Verona, MO 65734 (417) 498-2274 Independent Public Accounting Firm: The CPA Group, PC, 217 4th Street, Monett, MO 65708 Audit Period: Year ended June 30, 2023 The findings from the June 30, 2023, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT Material Weakness – Internal Control over Financial Reporting - Segregation of duties Finding 2023-001 Recommendation: We realize Because of limited resources and personnel, management may not be able to achieve a proper segregation of duties; however, our professional standards require that we bring this lack of segregation of duties to your attention in this report. Action Taken: The limited number of available personnel prohibits segregation of incompatible duties and the District does not have the resources to hire additional accounting personnel. Completion Date: Not applicable Sincerely, Dr. Tony Simmons, Superintendent Verona School District R-VII

Categories

Internal Control / Segregation of Duties HUD Housing Programs

Other Findings in this Audit

  • 9579 2023-001
    Material Weakness Repeat
  • 9580 2023-001
    Material Weakness Repeat
  • 9581 2023-001
    Material Weakness Repeat
  • 9582 2023-001
    Material Weakness Repeat
  • 9583 2023-001
    Material Weakness Repeat
  • 9584 2023-001
    Material Weakness Repeat
  • 9585 2023-001
    Material Weakness Repeat
  • 9586 2023-001
    Material Weakness Repeat
  • 586020 2023-001
    Material Weakness Repeat
  • 586021 2023-001
    Material Weakness Repeat
  • 586022 2023-001
    Material Weakness Repeat
  • 586023 2023-001
    Material Weakness Repeat
  • 586024 2023-001
    Material Weakness Repeat
  • 586025 2023-001
    Material Weakness Repeat
  • 586026 2023-001
    Material Weakness Repeat
  • 586027 2023-001
    Material Weakness Repeat
  • 586028 2023-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.553 School Breakfast Program $46,808
84.010 Title I Grants to Local Educational Agencies $25,215
84.424 Student Support and Academic Enrichment Program $24,381
10.565 Commodity Supplemental Food Program $22,567
84.358 Rural Education $18,032
10.559 Summer Food Service Program for Children $10,466
10.582 Fresh Fruit and Vegetable Program $8,655
10.555 National School Lunch Program $8,433
84.027 Special Education_grants to States $1,977
84.173 Special Education_preschool Grants $1,374
93.079 Cooperative Agreements to Promote Adolescent Health Through School-Based Hiv/std Prevention and School-Based Surveillance $50