FAC Explorer

Finding 976 (2022-002)

Material Weakness
Requirement
ABEILN
Questioned Costs
-
Year
2022
Accepted
2023-10-31
Audit: 1847
Organization: Martensdale St. Mary's Community School District (IA)
Auditor: Nolte Cornman & Johnson PC

AI Summary

  • Core Issue: An employee has too much control over multiple financial areas, risking incompatible duties.
  • Impacted Requirements: Segregation of duties is not being properly implemented, which is essential for internal controls.
  • Recommended Follow-up: Review and adjust responsibilities to ensure proper segregation of duties across all financial functions.

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 federal programs; cash, investments, receipts, disbursements, capital assets, payroll, wire transfers, financial reporting and computer systems. See finding 2022-001.

Corrective Action Plan

The District will continue to examine all financial operations and implement policies and procedures in line with best practice to ensure compliance and meet the recommendations of the Auditor.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 977 2022-002
    Material Weakness
  • 978 2022-002
    Material Weakness
  • 577418 2022-002
    Material Weakness
  • 577419 2022-002
    Material Weakness
  • 577420 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $320,292
84.425 Education Stabilization Fund $173,702
10.553 School Breakfast Program $88,089
84.358 Rural Education $46,016
84.010 Title I Grants to Local Educational Agencies $31,200
10.559 Summer Food Service Program for Children $12,211
84.424 Student Support and Academic Enrichment Program $10,000
93.575 Child Care and Development Block Grant $9,000
84.367 Improving Teacher Quality State Grants $8,139
84.027 Special Education_grants to States $3,699