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HOWARD-WINNESHIEK COMMUNITY SCHOOL DISTRICTLocal Government

EIN: 426049181

UEI: JU32NG93HQ33

Audited by: HACKER, NELSON & CO P.C.

Oversight agency: 10 [Department of Agriculture]

View federal awards & risk assessment →

Data as of August 28, 2026

HOWARD-WINNESHIEK COMMUNITY SCHOOL DISTRICT10 audit years13 findings12 repeat
10
Audit Years
13
Total Findings
12
Repeat Findings
$926.3K
Federal Awards Expended (FY 2025)

FY 2025-06-30

LOW-RISK AUDITEE$926,348 federal awards expended

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on March 4, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by September 4, 2026 (4 days from today).

What is a management decision? →
2025-001
Activities Allowed or Unallowed / Cost Allowability / Cash Management / Eligibility / Procurement & Suspension/Debarment / Program Income / Special Tests & Provisions
SIGNIFICANT DEFICIENCYREPEAT OF 2024-001

The District's offices are not large enough to permit an adequate segregation of duties for effective internal controls. Management has not separated incompatible activities of personnel, thereby creating risks related to the safeguarding of cash and the accuracy of the financial statements. Criteria: Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintian proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the District's financial statements. Cause: The concentration of closely related duties and responsibilites such as the recording and processing of cash receipts, preparing grant expenditures reports, preparing financial information for posting and analyzing financial information by a small staff makes it impossible to establish an adequate system of automatic internal checks on the accuracy and reliability of the accounting records. Recommendation: The District should review the operating procedures of the District offices to obtain the maximum internal control possible under the circumstances utilizing currently available staff. While we do recognize that the District is not large enough to permit a segregation of duties for effective internal controls, we believe it is important the Board be aware that this condition does exist. Repeat Finding: Yes Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.

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Full finding narrative

Condition: The District's offices are not large enough to permit an adequate segregation of duties for effective internal controls. Management has not separated incompatible activities of personnel, thereby creating risks related to the safeguarding of cash and the accuracy of the financial statements. Criteria: Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintian proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the District's financial statements. Cause: The concentration of closely related duties and responsibilites such as the recording and processing of cash receipts, preparing grant expenditures reports, preparing financial information for posting and analyzing financial information by a small staff makes it impossible to establish an adequate system of automatic internal checks on the accuracy and reliability of the accounting records. Recommendation: The District should review the operating procedures of the District offices to obtain the maximum internal control possible under the circumstances utilizing currently available staff. While we do recognize that the District is not large enough to permit a segregation of duties for effective internal controls, we believe it is important the Board be aware that this condition does exist. Repeat Finding: Yes Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.

Corrective Action Plan

Management is cognizant of this limitation and will implement additional procedures where possible.

Prior Finding References

2024-001

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles, Cash Management, Eligibility, Procurement and Suspension and Debarment, Program Income, Special Tests and Provisions →

FY 2024-06-30

LOW-RISK AUDITEE$1,295,920 federal awards expended

FAC accepted this audit on March 25, 2025 — management decision was due September 25, 2025.

2024-001
Activities Allowed or Unallowed / Cost Allowability / Cash Management / Eligibility / Procurement & Suspension/Debarment / Program Income / Special Tests & Provisions
SIGNIFICANT DEFICIENCYREPEAT OF 2023-001

The District's offices are not large enough to permit an adequate segregation of duties for effective internal controls. Management has not separated incompatible activities of personnel, thereby creating risks related to the safeguarding of cash and the accuracy of the financial statements. Criteria: Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintian proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the District's financial statements. Cause: The concentration of closely related duties and responsibilites such as the recording and processing of cash receipts, preparing grant expenditures reports, preparing financial information for posting and analyzing financial information by a small staff makes it impossible to establish an adequate system of automatic internal checks on the accuracy and reliability of the accounting records. Recommendation: The District should review the operating procedures of the District offices to obtain the maximum internal control possible under the circumstances utilizing currently available staff. While we do recognize that the District is not large enough to permit a segregation of duties for effective internal controls, we believe it is important the Board be aware that this condition does exist. Repeat Finding: Yes Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.

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Full finding narrative

Condition: The District's offices are not large enough to permit an adequate segregation of duties for effective internal controls. Management has not separated incompatible activities of personnel, thereby creating risks related to the safeguarding of cash and the accuracy of the financial statements. Criteria: Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintian proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the District's financial statements. Cause: The concentration of closely related duties and responsibilites such as the recording and processing of cash receipts, preparing grant expenditures reports, preparing financial information for posting and analyzing financial information by a small staff makes it impossible to establish an adequate system of automatic internal checks on the accuracy and reliability of the accounting records. Recommendation: The District should review the operating procedures of the District offices to obtain the maximum internal control possible under the circumstances utilizing currently available staff. While we do recognize that the District is not large enough to permit a segregation of duties for effective internal controls, we believe it is important the Board be aware that this condition does exist. Repeat Finding: Yes Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.

Corrective Action Plan

Management is cognizant of this limitation and will implement additional procedures where possible.

Prior Finding References

2023-001

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles, Cash Management, Eligibility, Procurement and Suspension and Debarment, Program Income, Special Tests and Provisions →

FY 2023-06-30

LOW-RISK AUDITEE$2,538,600 federal awards expended

FAC accepted this audit on February 29, 2024 — management decision was due August 29, 2024.

2023-001
Activities Allowed or Unallowed / Cost Allowability / Cash Management / Eligibility / Procurement & Suspension/Debarment / Program Income / Special Tests & Provisions
SIGNIFICANT DEFICIENCYREPEAT OF 2022-001

The District's offices are not large enough to permit an adequate segregation of duties for effective internal controls. Management has not separated incompatible activities of personnel, thereby creating risks related to the safeguarding of cash and the accuracy of the financial statements. Criteria: Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintian proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the District's financial statements. Cause: The concentration of closely related duties and responsibilites such as the recording and processing of cash receipts, preparing grant expenditures reports, preparing financial information for posting and analyzing financial information by a small staff makes it impossible to establish an adequate system of automatic internal checks on the accuracy and reliability of the accounting records. Recommendation: The District should review the operating procedures of the District offices to obtain the maximum internal control possible under the circumstances utilizing currently available staff. While we do recognize that the District is not large enough to permit a segregation of duties for effective internal controls, we believe it is important the Board be aware that this condition does exist. Repeat Finding: Yes Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.

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Full finding narrative

Condition: The District's offices are not large enough to permit an adequate segregation of duties for effective internal controls. Management has not separated incompatible activities of personnel, thereby creating risks related to the safeguarding of cash and the accuracy of the financial statements. Criteria: Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintian proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the District's financial statements. Cause: The concentration of closely related duties and responsibilites such as the recording and processing of cash receipts, preparing grant expenditures reports, preparing financial information for posting and analyzing financial information by a small staff makes it impossible to establish an adequate system of automatic internal checks on the accuracy and reliability of the accounting records. Recommendation: The District should review the operating procedures of the District offices to obtain the maximum internal control possible under the circumstances utilizing currently available staff. While we do recognize that the District is not large enough to permit a segregation of duties for effective internal controls, we believe it is important the Board be aware that this condition does exist. Repeat Finding: Yes Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.

Corrective Action Plan

Management is cognizant of this limitation and will implement additional procedures where possible.

Prior Finding References

2022-001

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles, Cash Management, Eligibility, Procurement and Suspension and Debarment, Program Income, Special Tests and Provisions →

FY 2022-06-30

LOW-RISK AUDITEE$2,128,559 federal awards expended

FAC accepted this audit on February 20, 2023 — management decision was due August 20, 2023.

2022-001
Activities Allowed or Unallowed / Cost Allowability / Cash Management / Eligibility / Procurement & Suspension/Debarment / Program Income / Special Tests & Provisions
SIGNIFICANT DEFICIENCYREPEAT OF 2021-001

The District?s offices are not large enough to permit an adequate segregation of duties for effective internal controls. Management has not separated incompatible activities of personnel, thereby creating risks related to the safeguarding of cash and the accuracy of the financial statements. Criteria: Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the District?s financial statements. Cause: The concentration of closely related duties and responsibilities such as the recording and processing of cash receipts, preparing grant expenditure reports, preparing financial information for posting and analyzing financial information by a small staff makes it impossible to establish an adequate system of automatic internal checks on the accuracy and reliability of the accounting records. Effect: This deficiency results in a reasonable possibility that the District would not be able to detect misstatements that would be material in relation to the financial statements and/or federal award programs in a timely period by employees in the normal course of performing their assigned functions. Recommendation: The District should review the operating procedures of the District offices to obtain the maximum internal control possible under the circumstances utilizing currently available staff. While we do recognize that the District is not large enough to permit a segregation of duties for effective internal controls, we believe it is important the Board be aware that this condition does exist. Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.

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Full finding narrative

Finding 2022-001 Overlapping Duties Condition: The District?s offices are not large enough to permit an adequate segregation of duties for effective internal controls. Management has not separated incompatible activities of personnel, thereby creating risks related to the safeguarding of cash and the accuracy of the financial statements. Criteria: Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the District?s financial statements. Cause: The concentration of closely related duties and responsibilities such as the recording and processing of cash receipts, preparing grant expenditure reports, preparing financial information for posting and analyzing financial information by a small staff makes it impossible to establish an adequate system of automatic internal checks on the accuracy and reliability of the accounting records. Effect: This deficiency results in a reasonable possibility that the District would not be able to detect misstatements that would be material in relation to the financial statements and/or federal award programs in a timely period by employees in the normal course of performing their assigned functions. Recommendation: The District should review the operating procedures of the District offices to obtain the maximum internal control possible under the circumstances utilizing currently available staff. While we do recognize that the District is not large enough to permit a segregation of duties for effective internal controls, we believe it is important the Board be aware that this condition does exist. Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.

Corrective Action Plan

Audit period: Year ended June 30, 2022 The finding from the June 30, 2022 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDING - FEDERAL AWARDS PROGRAM AUDIT U.S. Department of Education Internal control deficiencies: Federal Assistance Listing Number 84.010: Title I Grants to Local Educational Agencies Education Stabilization Fund (ESF): Federal Assistance Listing Number 84.425C: COVID-19 Governor?s Emergency Education Relief Fund (GEER) Federal Assistance Listing Number 84.425D: American Rescue Plan Elementary and Secondary School Emergency Relief (ARP ESSER III) Elementary and Secondary School Emergency Relief Fund II (ESSER II) Elementary and Secondary School Emergency Relief Fund II (ESSER) Federal Assistance Listing Number 84.425W: American Rescue Plan Elementary and Secondary School Emergency Relief Homeless Children and Youth (ARP-HCY) Federal Assistance Listing Number 84.425U: American Rescue Plan Elementary and Secondary School Emergency Relief (ARP ESSER III) Internal control deficiencies: See Finding 2022-001

Prior Finding References

2021-001

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles, Cash Management, Eligibility, Procurement and Suspension and Debarment, Program Income, Special Tests and Provisions →

FY 2021-06-30

LOW-RISK AUDITEE$1,836,716 federal awards expended

FAC accepted this audit on March 24, 2022 — management decision was due September 24, 2022.

2021-001
Activities Allowed or Unallowed / Cost Allowability / Cash Management / Eligibility / Procurement & Suspension/Debarment / Program Income / Special Tests & Provisions
SIGNIFICANT DEFICIENCYREPEAT OF 2020-001

The District?s offices are not large enough to permit an adequate segregation of duties for effective internal controls. Management has not separated incompatible activities of personnel, thereby creating risks related to the safeguarding of cash and the accuracy of the financial statements. Criteria: Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the District?s financial statements. Cause: The concentration of closely related duties and responsibilities such as the recording and processing of cash receipts, preparing grant expenditure reports, preparing financial information for posting and analyzing financial information by a small staff makes it impossible to establish an adequate system of automatic internal checks on the accuracy and reliability of the accounting records. Effect: This deficiency results in a reasonable possibility that the District would not be able to detect misstatements that would be material in relation to the financial statements and/or federal award programs in a timely period by employees in the normal course of performing their assigned functions. Recommendation: The District should review the operating procedures of the District offices to obtain the maximum internal control possible under the circumstances utilizing currently available staff. While we do recognize that the District is not large enough to permit a segregation of duties for effective internal controls, we believe it is important the Board be aware that this condition does exist. Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.

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Full finding narrative

Condition: The District?s offices are not large enough to permit an adequate segregation of duties for effective internal controls. Management has not separated incompatible activities of personnel, thereby creating risks related to the safeguarding of cash and the accuracy of the financial statements. Criteria: Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the District?s financial statements. Cause: The concentration of closely related duties and responsibilities such as the recording and processing of cash receipts, preparing grant expenditure reports, preparing financial information for posting and analyzing financial information by a small staff makes it impossible to establish an adequate system of automatic internal checks on the accuracy and reliability of the accounting records. Effect: This deficiency results in a reasonable possibility that the District would not be able to detect misstatements that would be material in relation to the financial statements and/or federal award programs in a timely period by employees in the normal course of performing their assigned functions. Recommendation: The District should review the operating procedures of the District offices to obtain the maximum internal control possible under the circumstances utilizing currently available staff. While we do recognize that the District is not large enough to permit a segregation of duties for effective internal controls, we believe it is important the Board be aware that this condition does exist. Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.

Corrective Action Plan

Audit period: Year ended June 30, 2021. The finding from the June 30, 2021 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDING - FEDERAL AWARDS PROGRAM AUDIT U.S. Department of Agriculture ? Assistance Listing Number 84.425 - Education Stabilization Fund ? Assistance Listing Number 10.555 - U.S. Department of Agriculture-National School Lunch Program ? Assistance Listing Number 10.555 - USDA Child Nutrition Program CARES Grants to States (COVID-19 SFSP) ? Assistance Listing Number 10.559 - U.S. Department of Agriculture-Summer Food Service Program for Children Internal control deficiencies: See Finding 2021-001 Recommendation: The District should review the operating procedures of the District offices to obtain the maximum internal control possible under the circumstances utilizing currently available staff. While we do recognize that the District is not large enough to permit a segregation of duties for effective internal controls, we believe it is important the Board be aware that this condition does exist. Action Taken: Management is cognizant of this limitation and will implement additional procedures where possible.

Prior Finding References

2020-001

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles, Cash Management, Eligibility, Procurement and Suspension and Debarment, Program Income, Special Tests and Provisions →

FY 2020-06-30

$823,067 federal awards expended

FAC accepted this audit on March 16, 2021 — management decision was due September 16, 2021.

2020-001
Activities Allowed or Unallowed / Cost Allowability / Reporting
SIGNIFICANT DEFICIENCYREPEAT OF 2019-001

The District?s offices are not large enough to permit an adequate segregation of duties for effective internal controls. Management has not separated incompatible activities of personnel, thereby creating risks related to the safeguarding of cash and the accuracy of the financial statements. Criteria: Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the District?s financial statements. Cause: The concentration of closely related duties and responsibilities such as the recording and processing of cash receipts, preparing grant expenditure reports, preparing financial information for posting and analyzing financial information by a small staff makes it impossible to establish an adequate system of automatic internal checks on the accuracy and reliability of the accounting records. Effect: This deficiency results in a reasonable possibility that the District would not be able to detect misstatements that would be material in relation to the financial statements in a timely period by employees in the normal course of performing their assigned functions. Recommendation: The District should review the operating procedures of the District offices to obtain the maximum internal control possible under the circumstances utilizing currently available staff. While we do recognize that the District is not large enough to permit a segregation of duties for effective internal controls, we believe it is important the Board be aware that this condition does exist. Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.

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Full finding narrative

Finding 2020-001 Overlapping Duties Condition: The District?s offices are not large enough to permit an adequate segregation of duties for effective internal controls. Management has not separated incompatible activities of personnel, thereby creating risks related to the safeguarding of cash and the accuracy of the financial statements. Criteria: Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the District?s financial statements. Cause: The concentration of closely related duties and responsibilities such as the recording and processing of cash receipts, preparing grant expenditure reports, preparing financial information for posting and analyzing financial information by a small staff makes it impossible to establish an adequate system of automatic internal checks on the accuracy and reliability of the accounting records. Effect: This deficiency results in a reasonable possibility that the District would not be able to detect misstatements that would be material in relation to the financial statements in a timely period by employees in the normal course of performing their assigned functions. Recommendation: The District should review the operating procedures of the District offices to obtain the maximum internal control possible under the circumstances utilizing currently available staff. While we do recognize that the District is not large enough to permit a segregation of duties for effective internal controls, we believe it is important the Board be aware that this condition does exist. Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.

Corrective Action Plan

The finding from the June 30, 2019 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDING - FEDERAL AWARDS PROGRAM AUDIT U.S. Department of Agriculture 2020 - School Breakfast Program - CFDA No. 10.553 2020 - National School Lunch Program - CFDA No. 10.555 2020 ? Child Nutrition Program CARES Grants to States (COVID-19 SFSP) - CFDA No. 10.555 2020 - Summer Food Service Program for Children - CFDA No. 10.559 Significant Deficiency: See Finding 2020-001 Recommendation: The District should review the operating procedures of the District offices to obtain the maximum internal control possible under the circumstances utilizing currently available staff. While we do recognize that the District is not large enough to permit a segregation of duties for effective internal controls, we believe it is important the Board be aware that this condition does exist. Action Taken: Management is cognizant of this limitation and will implement additional procedures where possible.

Prior Finding References

2019-001

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles, Reporting →

FY 2019-06-30

$846,214 federal awards expended

FAC accepted this audit on February 19, 2020 — management decision was due August 19, 2020.

2019-001
Activities Allowed or Unallowed / Cost Allowability / Reporting
SIGNIFICANT DEFICIENCYREPEAT OF 2018-001

The District?s offices are not large enough to permit an adequate segregation of duties for effective internal controls. Management has not separated incompatible activities of personnel, thereby creating risks related to the safeguarding of cash and the accuracy of the financial statements. Criteria: Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the District?s financial statements. Cause: The concentration of closely related duties and responsibilities such as the recording and processing of cash receipts, preparing grant expenditure reports, preparing financial information for posting and analyzing financial information by a small staff makes it impossible to establish an adequate system of automatic internal checks on the accuracy and reliability of the accounting records. Effect: This deficiency results in a reasonable possibility that the District would not be able to detect misstatements that would be material in relation to the financial statements in a timely period by employees in the normal course of performing their assigned functions. Recommendation: The District should review the operating procedures of the District offices to obtain the maximum internal control possible under the circumstances utilizing currently available staff. While we do recognize that the District is not large enough to permit a segregation of duties for effective internal controls, we believe it is important the Board be aware that this condition does exist. Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.

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Full finding narrative

Finding 2019-001 Overlapping Duties Condition: The District?s offices are not large enough to permit an adequate segregation of duties for effective internal controls. Management has not separated incompatible activities of personnel, thereby creating risks related to the safeguarding of cash and the accuracy of the financial statements. Criteria: Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the District?s financial statements. Cause: The concentration of closely related duties and responsibilities such as the recording and processing of cash receipts, preparing grant expenditure reports, preparing financial information for posting and analyzing financial information by a small staff makes it impossible to establish an adequate system of automatic internal checks on the accuracy and reliability of the accounting records. Effect: This deficiency results in a reasonable possibility that the District would not be able to detect misstatements that would be material in relation to the financial statements in a timely period by employees in the normal course of performing their assigned functions. Recommendation: The District should review the operating procedures of the District offices to obtain the maximum internal control possible under the circumstances utilizing currently available staff. While we do recognize that the District is not large enough to permit a segregation of duties for effective internal controls, we believe it is important the Board be aware that this condition does exist. Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.

Corrective Action Plan

The finding from the June 30, 2019 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDING - FEDERAL AWARDS PROGRAM AUDIT U.S. Department of Agriculture 2019 - School Breakfast Program - CFDA No. 10.553 2019 - National School Lunch Program - CFDA No. 10.555 2019 - Summer Food Service Program for Children - CFDA No. 10.559 Significant Deficiency: See Finding 2019-001 Recommendation: The District should review the operating procedures of the District offices to obtain the maximum internal control possible under the circumstances utilizing currently available staff. While we do recognize that the District is not large enough to permit a segregation of duties for effective internal controls, we believe it is important the Board be aware that this condition does exist. Action Taken: Management is cognizant of this limitation and will implement additional procedures where possible.

Prior Finding References

2018-001

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles, Reporting →

FY 2018-06-30

$753,231 federal awards expended

FAC accepted this audit on March 25, 2019 — management decision was due September 25, 2019.

2018-001
Activities Allowed or Unallowed / Cost Allowability / Reporting
SIGNIFICANT DEFICIENCYREPEAT OF 2017-001

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

Prior Finding References

2017-001

About Activities Allowed or Unallowed, Allowable Costs / Cost Principles, Reporting →

FY 2017-06-30

$866,324 federal awards expended

FAC accepted this audit on January 28, 2018 — management decision was due July 28, 2018.

2017-001
Other
MATERIAL WEAKNESSREPEAT OF 2016-001

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

Prior Finding References

2016-001

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2017-002
Other
MATERIAL WEAKNESSREPEAT OF 2016-003

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

Prior Finding References

2016-003

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FY 2016-06-30

$888,207 federal awards expended

FAC accepted this audit on March 21, 2017 — management decision was due September 21, 2017.

2016-001
Other
MATERIAL WEAKNESSREPEAT OF 2015-001OTHER MATTERS

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

Prior Finding References

2015-001

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2016-002
Other
MATERIAL WEAKNESSREPEAT OF 2015-002

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

Prior Finding References

2015-002

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2016-003
Other
MATERIAL WEAKNESS

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

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