Corrective Action Tracker (FY24 Audit)

Audit findings tracked

Material weaknesses

Noncompliance / sig. def.

Statutory reporting

Schedule of Findings — material weaknesses, noncompliance & significant deficiency

Finding & corrective action	Classification	Owner	Target	Status
2024-001Insufficient segregation of duties — payroll cycle. Duties split across three staff in ASANA with dated task calendars; controller approves the payroll file.	Material weakness	Controller / Payroll	9/30/26	In progress
2024-002Insufficient segregation of duties — cash disbursement. Multi-step requisition approval in place; ongoing staff training on codes and procedures.	Material weakness	CFO / Business Office	12/31/26	In progress
2024-003Insufficient segregation of duties — receipt process (buildings). Building a staff training document on funds and revenue/expenditure codes, posted to an internal reference site.	Material weakness	CFO / Business Office	12/31/26	In progress
2024-004Insufficient reconciling & monitoring — cash accounts & CDs. All investments now shown in finance software; cross-training under way toward daily, real-time reconciliation.	Material weakness	CFO / Business Office	6/30/27	In progress
2024-005Improper identification & adjustment of funds. Year-end adjusting entries not made timely. Multi-layer journal-entry segregation (code / approve / enter / post); two CPAs and two SBOs on staff.	Material weakness	CFO / Controller	6/30/27	In progress
2024-009Lacked adequate processes — federal programs. Moving most purchases through the requisition/encumbrance workflow with multi-layer approval; PD on federal coding.	Material weakness	CFO / Business Office	12/31/26	In progress
2024-010Lacked process to identify federal capital assets. Two ESF-funded vehicles over the $5K threshold not capitalized or pre-approved by the State. Going live with the SUI fixed-asset module in FY27.	Material weakness	CFO / Business Office	FY27	Planned (FY27)
2024-011Lacked process to document Special Ed high-cost claims. Turnover left claims undocumented; staff will retain all claims support and complete PD on Sped expenditure policy/compliance.	Material weakness	CFO / Sped Director	6/30/27	In progress
2024-0062023 & 2024 single audits not filed timely. Neither filed within 9 months of year-end. FY24 filed June 2026; FY25 targeted Nov 2026; FY26 by the March 30, 2027 deadline.	Noncompliance	CFO	3/30/27	In progress
2024-007Student Activity Fund — deficit fund balance. COO and CFO presented the fund to the Board (June 2026) and met with ADs/principals 6/17/26; staff PD on coding scheduled mid-July 2026.	Noncompliance	COO / CFO	Ongoing	In progress
2024-008Interfund payables/receivables not authorized by Board resolution. Not approved before occurring, not repaid by Oct 1 of the following year, interest owed. Going forward, all such transactions go to the Board first.	Noncompliance	CFO / Board	9/30/26	In progress
2024-012Lacks process for report preparation & review. Reports were prepared and submitted by the same employee without documented review; multiple staff now involved with documented preparer/reviewer sign-off.	Significant deficiency	Controller	9/30/26	In progress
2024-013Unallowable expenditures charged to ESF (COVID) programs. PD on allowed vs. unallowed one-time funding expenditures so staff stay within program parameters.	Noncompliance (material)	CFO / Business Office	12/31/26	In progress
2024-014Unable to provide program documentation. Same root cause and remediation as 2024-011 (Special Ed claims documentation and PD).	Noncompliance (material)	CFO / Sped Director	6/30/27	In progress

Findings relating to statutory reporting

Finding & corrective action	Classification	Owner	Target	Status
IV-A-24Certified budget exceeded. Exceeded in the support and other functions. Monthly monitoring of all four functional areas; amendments with public hearing and Board approval by the May 31 deadline.	Statutory	CFO / Board	5/31/27	In progress
IV-H-24Certified enrollment variances. Variances noted to the DE in Oct 2023; processes to be reviewed with all involved staff to ensure accuracy before submission (affects aid/levy).	Statutory	CFO / Registrar	10/15/26	In progress
IV-I-24Supplementary weighting variances. Tied to the certified-enrollment remediation in IV-H-24.	Statutory	CFO / Registrar	10/15/26	In progress
IV-J-24District lacked a formal depository resolution. CFO will provide an annual depository resolution naming institutions and maximum deposit limits.	Statutory	CFO	9/30/26	Planned
IV-N-24509A certificate of compliance not filed timely. 2024 and 2025 certificates now filed; 2026 and later to be filed as required under Ch. 509A.15.	Statutory	CFO	Annual	Substantially addressed

Committee commentary — FY24 audit findings The FY2024 audit was issued June 10, 2026 — roughly two years after the June 30, 2024 year-end — and carries eight material weaknesses, with the late filing itself cited as an instance of noncompliance (2024-006). The most severe cluster is around segregation of duties, cash reconciliation, and year-end fund adjustment (2024-001 through 005), which the auditor links to business-office turnover. Recommended committee action: require the CFO to report against this tracker at each FOC meeting, hold the FY25-filed-by-November-2026 and FY26-filed-by-March-2027 commitments (2024-006) as hard deadlines, and request documented closure evidence for each material weakness before it is marked closed.

Other control deficiencies (auditor management letter, below significant-deficiency level). The auditor separately identified lower-level recommendations the committee should track to completion:

Disbursements — 9 of 25 sampled disbursements lacked a purchase order; 4 not on the Board bill listing; travel pre-approvals and credit-card receipts missing; ESSER coding errors.
Payroll — no HR-to-payroll contract reconciliation; I-9s held in payroll; unsigned contracts processed after pay; an FY23 rate used for FY24 overtime; lunch-break export discrepancy.
Receipts — nutrition price/POS reconciliation gaps (variances $202–$41,076); athletics gate receipts paid by check to ADs; admin-building receipt segregation.
Journal entries / Technology — no formal JE approval; GL software administrator should move to IT; underutilized, non-integrated software.
Stale-dated checks & capital assets — outstanding checks from FY2004–FY2023; manual Excel asset/depreciation tracking; capitalization-threshold policy update (GASB 87/96).
Child Nutrition & Early Retirement — non-public-purpose meeting food; undocumented meal-claim adjustments; early-retirement packages exceeding Board policy by $870,324 (2023) and $389,019 (2024) without Board approval.

Sources: Schedule of Findings and Questioned Costs, Iowa City CSD year ended June 30, 2024, Bohnsack & Frommelt LLP (issued June 10, 2026); district management action plan (Pat Moore, CFO, to the Board through Supt. Matt Degner); independent auditor’s control-deficiency / management letter. Update process: status changes require documentation; closure of a material weakness requires evidence the control operated for a full cycle. Note: targets and statuses are derived from the district’s stated action plan; no formal closure dates had been certified as of this report.

Corrective Action Tracker — FY2024 Audit