Finding 9588 (2023-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-01-24
Audit: 13282
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 11, 2023 U.S. DEPARTMENT OF EDUCATION U.S. DEPT. OF AGRICULTURE Pierce City School District R-VI 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. Kelli Alumbaugh, Superintendent Pierce City School District R-VI 300 N Myrtle Street Pierce City, MO 65723 (417) 476-2555 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. Kelli Alumbaugh, Superintendent Pierce City School District R-VI

Categories

Internal Control / Segregation of Duties HUD Housing Programs

Other Findings in this Audit

  • 9589 2023-001
    Material Weakness Repeat
  • 9590 2023-001
    Material Weakness Repeat
  • 9591 2023-001
    Material Weakness Repeat
  • 9592 2023-001
    Material Weakness Repeat
  • 9593 2023-001
    Material Weakness Repeat
  • 9594 2023-001
    Material Weakness Repeat
  • 9595 2023-001
    Material Weakness Repeat
  • 9596 2023-001
    Material Weakness Repeat
  • 586030 2023-001
    Material Weakness Repeat
  • 586031 2023-001
    Material Weakness Repeat
  • 586032 2023-001
    Material Weakness Repeat
  • 586033 2023-001
    Material Weakness Repeat
  • 586034 2023-001
    Material Weakness Repeat
  • 586035 2023-001
    Material Weakness Repeat
  • 586036 2023-001
    Material Weakness Repeat
  • 586037 2023-001
    Material Weakness Repeat
  • 586038 2023-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education_grants to States $94,911
10.559 Summer Food Service Program for Children $34,830
84.425 Education Stabilization Fund $29,500
10.565 Commodity Supplemental Food Program $24,487
84.010 Title I Grants to Local Educational Agencies $12,860
10.553 School Breakfast Program $11,425
10.555 National School Lunch Program $8,390
84.173 Special Education_preschool Grants $7,306