Material Weakness ? Lack of Segregation of Duties Criteria: Ideally the internal controls over financial reporting would allow for an adequate segregation of duties among employees. Condition: The District?s limited number of office staff precludes a proper segregation of functions to assure adequate internal control over the cash receipts cycle. Cause: The District does not have enough office employees to adequately segregate duties. Effect: This results in a greater chance for material misstatements to the financial statements that would go undetected, since there are not sufficient mitigating controls in place to catch these errors. Recommendation: This is not unusual in districts of your size, but the Board and management should continue to be aware of this condition and realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable from a control point of view.
Material Weakness ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: The District is responsible for establishing and maintaining internal control and for the fair presentation of the District?s financial statements, disclosures, supplementary information, schedule of expenditures of federal awards, and schedule of state financial assistance in conformity with generally accepted accounting principles (GAAP) of the United States. Condition: The potential exists that a material misstatement of the District?s financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance could occur and not be prevented or detected by the District?s internal control. Cause: The District does not have staff trained to prepare GAAP financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance. Effect: The District engages the audit firm to prepare drafts of its financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance in accordance with GAAP based on information and trial balances provided by the District. Recommendation: The District should consider providing training on GAAP to accounting personnel.
Material Weakness ? Lack of Segregation of Duties Criteria: Ideally the internal controls over financial reporting would allow for an adequate segregation of duties among employees. Condition: The District?s limited number of office staff precludes a proper segregation of functions to assure adequate internal control over the cash receipts cycle. Cause: The District does not have enough office employees to adequately segregate duties. Effect: This results in a greater chance for material misstatements to the financial statements that would go undetected, since there are not sufficient mitigating controls in place to catch these errors. Recommendation: This is not unusual in districts of your size, but the Board and management should continue to be aware of this condition and realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable from a control point of view.
Material Weakness ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: The District is responsible for establishing and maintaining internal control and for the fair presentation of the District?s financial statements, disclosures, supplementary information, schedule of expenditures of federal awards, and schedule of state financial assistance in conformity with generally accepted accounting principles (GAAP) of the United States. Condition: The potential exists that a material misstatement of the District?s financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance could occur and not be prevented or detected by the District?s internal control. Cause: The District does not have staff trained to prepare GAAP financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance. Effect: The District engages the audit firm to prepare drafts of its financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance in accordance with GAAP based on information and trial balances provided by the District. Recommendation: The District should consider providing training on GAAP to accounting personnel.
Material Weakness ? Lack of Segregation of Duties Criteria: Ideally the internal controls over financial reporting would allow for an adequate segregation of duties among employees. Condition: The District?s limited number of office staff precludes a proper segregation of functions to assure adequate internal control over the cash receipts cycle. Cause: The District does not have enough office employees to adequately segregate duties. Effect: This results in a greater chance for material misstatements to the financial statements that would go undetected, since there are not sufficient mitigating controls in place to catch these errors. Recommendation: This is not unusual in districts of your size, but the Board and management should continue to be aware of this condition and realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable from a control point of view.
Material Weakness ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: The District is responsible for establishing and maintaining internal control and for the fair presentation of the District?s financial statements, disclosures, supplementary information, schedule of expenditures of federal awards, and schedule of state financial assistance in conformity with generally accepted accounting principles (GAAP) of the United States. Condition: The potential exists that a material misstatement of the District?s financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance could occur and not be prevented or detected by the District?s internal control. Cause: The District does not have staff trained to prepare GAAP financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance. Effect: The District engages the audit firm to prepare drafts of its financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance in accordance with GAAP based on information and trial balances provided by the District. Recommendation: The District should consider providing training on GAAP to accounting personnel.
Material Weakness ? Lack of Segregation of Duties Criteria: Ideally the internal controls over financial reporting would allow for an adequate segregation of duties among employees. Condition: The District?s limited number of office staff precludes a proper segregation of functions to assure adequate internal control over the cash receipts cycle. Cause: The District does not have enough office employees to adequately segregate duties. Effect: This results in a greater chance for material misstatements to the financial statements that would go undetected, since there are not sufficient mitigating controls in place to catch these errors. Recommendation: This is not unusual in districts of your size, but the Board and management should continue to be aware of this condition and realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable from a control point of view.
Material Weakness ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: The District is responsible for establishing and maintaining internal control and for the fair presentation of the District?s financial statements, disclosures, supplementary information, schedule of expenditures of federal awards, and schedule of state financial assistance in conformity with generally accepted accounting principles (GAAP) of the United States. Condition: The potential exists that a material misstatement of the District?s financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance could occur and not be prevented or detected by the District?s internal control. Cause: The District does not have staff trained to prepare GAAP financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance. Effect: The District engages the audit firm to prepare drafts of its financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance in accordance with GAAP based on information and trial balances provided by the District. Recommendation: The District should consider providing training on GAAP to accounting personnel.
Material Weakness ? Lack of Segregation of Duties Criteria: Ideally the internal controls over financial reporting would allow for an adequate segregation of duties among employees. Condition: The District?s limited number of office staff precludes a proper segregation of functions to assure adequate internal control over the cash receipts cycle. Cause: The District does not have enough office employees to adequately segregate duties. Effect: This results in a greater chance for material misstatements to the financial statements that would go undetected, since there are not sufficient mitigating controls in place to catch these errors. Recommendation: This is not unusual in districts of your size, but the Board and management should continue to be aware of this condition and realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable from a control point of view.
Material Weakness ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: The District is responsible for establishing and maintaining internal control and for the fair presentation of the District?s financial statements, disclosures, supplementary information, schedule of expenditures of federal awards, and schedule of state financial assistance in conformity with generally accepted accounting principles (GAAP) of the United States. Condition: The potential exists that a material misstatement of the District?s financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance could occur and not be prevented or detected by the District?s internal control. Cause: The District does not have staff trained to prepare GAAP financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance. Effect: The District engages the audit firm to prepare drafts of its financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance in accordance with GAAP based on information and trial balances provided by the District. Recommendation: The District should consider providing training on GAAP to accounting personnel.
Material Weakness ? Lack of Segregation of Duties Criteria: Ideally the internal controls over financial reporting would allow for an adequate segregation of duties among employees. Condition: The District?s limited number of office staff precludes a proper segregation of functions to assure adequate internal control over the cash receipts cycle. Cause: The District does not have enough office employees to adequately segregate duties. Effect: This results in a greater chance for material misstatements to the financial statements that would go undetected, since there are not sufficient mitigating controls in place to catch these errors. Recommendation: This is not unusual in districts of your size, but the Board and management should continue to be aware of this condition and realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable from a control point of view.
Material Weakness ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: The District is responsible for establishing and maintaining internal control and for the fair presentation of the District?s financial statements, disclosures, supplementary information, schedule of expenditures of federal awards, and schedule of state financial assistance in conformity with generally accepted accounting principles (GAAP) of the United States. Condition: The potential exists that a material misstatement of the District?s financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance could occur and not be prevented or detected by the District?s internal control. Cause: The District does not have staff trained to prepare GAAP financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance. Effect: The District engages the audit firm to prepare drafts of its financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance in accordance with GAAP based on information and trial balances provided by the District. Recommendation: The District should consider providing training on GAAP to accounting personnel.