Finding #2023-001 – Limited Segregation of Duties (Prior Year Finding #2022-001)
Condition: The available office staff precludes a proper segregation of duties in the following control areas: cash receipts/revenues, payroll, cash disbursements, human resources and grant claims processing. There is not an appropriate system for review and approval of new vendors. Bank reconciliations are not reviewed and approved by someone independent of the accounts payable/disbursement cycle. Persons preparing payrolls are not independent of other personnel duties or restricted from access to the payroll system, and changes to employee rates and data in the payroll system are not approved or verified by someone independent of payroll processing.
Effect: Errors or irregularities could occur and not be detected on a timely basis.
Cause: Due to the small size of the District there is only one person in the accounting department, who records all transactions and performs all reconciliations.
Criteria: Internal controls should be in place that provides adequate segregation of duties.
Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district’s operations.
Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about more effective segregation of duties. The Board of Education reviews and approves a monthly treasurer’s report with all receipts, payroll and disbursements. The Superintendent also reviews and approves receipts, purchase orders, invoices, and grant claims. The employee handbook is approved by the Board of Education, and employee pay is according to an established salary schedule.
Finding #2023-001 – Limited Segregation of Duties (Prior Year Finding #2022-001)
Condition: The available office staff precludes a proper segregation of duties in the following control areas: cash receipts/revenues, payroll, cash disbursements, human resources and grant claims processing. There is not an appropriate system for review and approval of new vendors. Bank reconciliations are not reviewed and approved by someone independent of the accounts payable/disbursement cycle. Persons preparing payrolls are not independent of other personnel duties or restricted from access to the payroll system, and changes to employee rates and data in the payroll system are not approved or verified by someone independent of payroll processing.
Effect: Errors or irregularities could occur and not be detected on a timely basis.
Cause: Due to the small size of the District there is only one person in the accounting department, who records all transactions and performs all reconciliations.
Criteria: Internal controls should be in place that provides adequate segregation of duties.
Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district’s operations.
Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about more effective segregation of duties. The Board of Education reviews and approves a monthly treasurer’s report with all receipts, payroll and disbursements. The Superintendent also reviews and approves receipts, purchase orders, invoices, and grant claims. The employee handbook is approved by the Board of Education, and employee pay is according to an established salary schedule.
Finding #2023-001 – Limited Segregation of Duties (Prior Year Finding #2022-001)
Condition: The available office staff precludes a proper segregation of duties in the following control areas: cash receipts/revenues, payroll, cash disbursements, human resources and grant claims processing. There is not an appropriate system for review and approval of new vendors. Bank reconciliations are not reviewed and approved by someone independent of the accounts payable/disbursement cycle. Persons preparing payrolls are not independent of other personnel duties or restricted from access to the payroll system, and changes to employee rates and data in the payroll system are not approved or verified by someone independent of payroll processing.
Effect: Errors or irregularities could occur and not be detected on a timely basis.
Cause: Due to the small size of the District there is only one person in the accounting department, who records all transactions and performs all reconciliations.
Criteria: Internal controls should be in place that provides adequate segregation of duties.
Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district’s operations.
Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about more effective segregation of duties. The Board of Education reviews and approves a monthly treasurer’s report with all receipts, payroll and disbursements. The Superintendent also reviews and approves receipts, purchase orders, invoices, and grant claims. The employee handbook is approved by the Board of Education, and employee pay is according to an established salary schedule.
Finding #2023-001 – Limited Segregation of Duties (Prior Year Finding #2022-001)
Condition: The available office staff precludes a proper segregation of duties in the following control areas: cash receipts/revenues, payroll, cash disbursements, human resources and grant claims processing. There is not an appropriate system for review and approval of new vendors. Bank reconciliations are not reviewed and approved by someone independent of the accounts payable/disbursement cycle. Persons preparing payrolls are not independent of other personnel duties or restricted from access to the payroll system, and changes to employee rates and data in the payroll system are not approved or verified by someone independent of payroll processing.
Effect: Errors or irregularities could occur and not be detected on a timely basis.
Cause: Due to the small size of the District there is only one person in the accounting department, who records all transactions and performs all reconciliations.
Criteria: Internal controls should be in place that provides adequate segregation of duties.
Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district’s operations.
Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about more effective segregation of duties. The Board of Education reviews and approves a monthly treasurer’s report with all receipts, payroll and disbursements. The Superintendent also reviews and approves receipts, purchase orders, invoices, and grant claims. The employee handbook is approved by the Board of Education, and employee pay is according to an established salary schedule.
Finding #2023-001 – Limited Segregation of Duties (Prior Year Finding #2022-001)
Condition: The available office staff precludes a proper segregation of duties in the following control areas: cash receipts/revenues, payroll, cash disbursements, human resources and grant claims processing. There is not an appropriate system for review and approval of new vendors. Bank reconciliations are not reviewed and approved by someone independent of the accounts payable/disbursement cycle. Persons preparing payrolls are not independent of other personnel duties or restricted from access to the payroll system, and changes to employee rates and data in the payroll system are not approved or verified by someone independent of payroll processing.
Effect: Errors or irregularities could occur and not be detected on a timely basis.
Cause: Due to the small size of the District there is only one person in the accounting department, who records all transactions and performs all reconciliations.
Criteria: Internal controls should be in place that provides adequate segregation of duties.
Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district’s operations.
Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about more effective segregation of duties. The Board of Education reviews and approves a monthly treasurer’s report with all receipts, payroll and disbursements. The Superintendent also reviews and approves receipts, purchase orders, invoices, and grant claims. The employee handbook is approved by the Board of Education, and employee pay is according to an established salary schedule.
Finding #2023-001 – Limited Segregation of Duties (Prior Year Finding #2022-001)
Condition: The available office staff precludes a proper segregation of duties in the following control areas: cash receipts/revenues, payroll, cash disbursements, human resources and grant claims processing. There is not an appropriate system for review and approval of new vendors. Bank reconciliations are not reviewed and approved by someone independent of the accounts payable/disbursement cycle. Persons preparing payrolls are not independent of other personnel duties or restricted from access to the payroll system, and changes to employee rates and data in the payroll system are not approved or verified by someone independent of payroll processing.
Effect: Errors or irregularities could occur and not be detected on a timely basis.
Cause: Due to the small size of the District there is only one person in the accounting department, who records all transactions and performs all reconciliations.
Criteria: Internal controls should be in place that provides adequate segregation of duties.
Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district’s operations.
Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about more effective segregation of duties. The Board of Education reviews and approves a monthly treasurer’s report with all receipts, payroll and disbursements. The Superintendent also reviews and approves receipts, purchase orders, invoices, and grant claims. The employee handbook is approved by the Board of Education, and employee pay is according to an established salary schedule.
Finding #2023-001 – Limited Segregation of Duties (Prior Year Finding #2022-001)
Condition: The available office staff precludes a proper segregation of duties in the following control areas: cash receipts/revenues, payroll, cash disbursements, human resources and grant claims processing. There is not an appropriate system for review and approval of new vendors. Bank reconciliations are not reviewed and approved by someone independent of the accounts payable/disbursement cycle. Persons preparing payrolls are not independent of other personnel duties or restricted from access to the payroll system, and changes to employee rates and data in the payroll system are not approved or verified by someone independent of payroll processing.
Effect: Errors or irregularities could occur and not be detected on a timely basis.
Cause: Due to the small size of the District there is only one person in the accounting department, who records all transactions and performs all reconciliations.
Criteria: Internal controls should be in place that provides adequate segregation of duties.
Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district’s operations.
Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about more effective segregation of duties. The Board of Education reviews and approves a monthly treasurer’s report with all receipts, payroll and disbursements. The Superintendent also reviews and approves receipts, purchase orders, invoices, and grant claims. The employee handbook is approved by the Board of Education, and employee pay is according to an established salary schedule.
Finding #2023-001 – Limited Segregation of Duties (Prior Year Finding #2022-001)
Condition: The available office staff precludes a proper segregation of duties in the following control areas: cash receipts/revenues, payroll, cash disbursements, human resources and grant claims processing. There is not an appropriate system for review and approval of new vendors. Bank reconciliations are not reviewed and approved by someone independent of the accounts payable/disbursement cycle. Persons preparing payrolls are not independent of other personnel duties or restricted from access to the payroll system, and changes to employee rates and data in the payroll system are not approved or verified by someone independent of payroll processing.
Effect: Errors or irregularities could occur and not be detected on a timely basis.
Cause: Due to the small size of the District there is only one person in the accounting department, who records all transactions and performs all reconciliations.
Criteria: Internal controls should be in place that provides adequate segregation of duties.
Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district’s operations.
Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about more effective segregation of duties. The Board of Education reviews and approves a monthly treasurer’s report with all receipts, payroll and disbursements. The Superintendent also reviews and approves receipts, purchase orders, invoices, and grant claims. The employee handbook is approved by the Board of Education, and employee pay is according to an established salary schedule.
Finding #2023-001 – Limited Segregation of Duties (Prior Year Finding #2022-001)
Condition: The available office staff precludes a proper segregation of duties in the following control areas: cash receipts/revenues, payroll, cash disbursements, human resources and grant claims processing. There is not an appropriate system for review and approval of new vendors. Bank reconciliations are not reviewed and approved by someone independent of the accounts payable/disbursement cycle. Persons preparing payrolls are not independent of other personnel duties or restricted from access to the payroll system, and changes to employee rates and data in the payroll system are not approved or verified by someone independent of payroll processing.
Effect: Errors or irregularities could occur and not be detected on a timely basis.
Cause: Due to the small size of the District there is only one person in the accounting department, who records all transactions and performs all reconciliations.
Criteria: Internal controls should be in place that provides adequate segregation of duties.
Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district’s operations.
Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about more effective segregation of duties. The Board of Education reviews and approves a monthly treasurer’s report with all receipts, payroll and disbursements. The Superintendent also reviews and approves receipts, purchase orders, invoices, and grant claims. The employee handbook is approved by the Board of Education, and employee pay is according to an established salary schedule.
Finding #2023-001 – Limited Segregation of Duties (Prior Year Finding #2022-001)
Condition: The available office staff precludes a proper segregation of duties in the following control areas: cash receipts/revenues, payroll, cash disbursements, human resources and grant claims processing. There is not an appropriate system for review and approval of new vendors. Bank reconciliations are not reviewed and approved by someone independent of the accounts payable/disbursement cycle. Persons preparing payrolls are not independent of other personnel duties or restricted from access to the payroll system, and changes to employee rates and data in the payroll system are not approved or verified by someone independent of payroll processing.
Effect: Errors or irregularities could occur and not be detected on a timely basis.
Cause: Due to the small size of the District there is only one person in the accounting department, who records all transactions and performs all reconciliations.
Criteria: Internal controls should be in place that provides adequate segregation of duties.
Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district’s operations.
Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about more effective segregation of duties. The Board of Education reviews and approves a monthly treasurer’s report with all receipts, payroll and disbursements. The Superintendent also reviews and approves receipts, purchase orders, invoices, and grant claims. The employee handbook is approved by the Board of Education, and employee pay is according to an established salary schedule.