Audit 294490

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. Repeat Finding: Yes. Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.

Condition: During our audit, we noted the bank reconciliations for the District’s checking, savings and ISJIT accounts were completed but not compared to the general ledger balance on a monthly basis to investigate and resolve any variances in a timely manner. Criteria: When performed timely and accurately bank reconciliations provide support for the cash position of the District and allow users a higher degree of confidence in the amount of cash reflected on the financial statements. Cause: It does not appear the District has established procedures to require bank reconciliations for checking, savings and ISJIT accounts be reconciled to the general ledger each month. Effect: Inadequate performance of bank reconciliations could adversely affect the District’s ability to prevent or detect and correct misstatements, errors, or misappropriation on a timely basis by employees in the normal course of performing their assigned functions. Recommendation: The District should ensure bank reconciliations are being prepared and compared to the general ledger balance each month to investigate and resolve any variances in a timely manner. Repeat Finding: Yes. Views of Responsible Officials and Planned Corrective Actions: In the future, we will perform bank reconciliations and compare to the general ledger each month.

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. Repeat Finding: Yes. Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.

Condition: During our audit, we noted the bank reconciliations for the District’s checking, savings and ISJIT accounts were completed but not compared to the general ledger balance on a monthly basis to investigate and resolve any variances in a timely manner. Criteria: When performed timely and accurately bank reconciliations provide support for the cash position of the District and allow users a higher degree of confidence in the amount of cash reflected on the financial statements. Cause: It does not appear the District has established procedures to require bank reconciliations for checking, savings and ISJIT accounts be reconciled to the general ledger each month. Effect: Inadequate performance of bank reconciliations could adversely affect the District’s ability to prevent or detect and correct misstatements, errors, or misappropriation on a timely basis by employees in the normal course of performing their assigned functions. Recommendation: The District should ensure bank reconciliations are being prepared and compared to the general ledger balance each month to investigate and resolve any variances in a timely manner. Repeat Finding: Yes. Views of Responsible Officials and Planned Corrective Actions: In the future, we will perform bank reconciliations and compare to the general ledger each month.

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. Repeat Finding: Yes. Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.

Condition: During our audit, we noted the bank reconciliations for the District’s checking, savings and ISJIT accounts were completed but not compared to the general ledger balance on a monthly basis to investigate and resolve any variances in a timely manner. Criteria: When performed timely and accurately bank reconciliations provide support for the cash position of the District and allow users a higher degree of confidence in the amount of cash reflected on the financial statements. Cause: It does not appear the District has established procedures to require bank reconciliations for checking, savings and ISJIT accounts be reconciled to the general ledger each month. Effect: Inadequate performance of bank reconciliations could adversely affect the District’s ability to prevent or detect and correct misstatements, errors, or misappropriation on a timely basis by employees in the normal course of performing their assigned functions. Recommendation: The District should ensure bank reconciliations are being prepared and compared to the general ledger balance each month to investigate and resolve any variances in a timely manner. Repeat Finding: Yes. Views of Responsible Officials and Planned Corrective Actions: In the future, we will perform bank reconciliations and compare to the general ledger each month.

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. Repeat Finding: Yes. Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.

Condition: During our audit, we noted the bank reconciliations for the District’s checking, savings and ISJIT accounts were completed but not compared to the general ledger balance on a monthly basis to investigate and resolve any variances in a timely manner. Criteria: When performed timely and accurately bank reconciliations provide support for the cash position of the District and allow users a higher degree of confidence in the amount of cash reflected on the financial statements. Cause: It does not appear the District has established procedures to require bank reconciliations for checking, savings and ISJIT accounts be reconciled to the general ledger each month. Effect: Inadequate performance of bank reconciliations could adversely affect the District’s ability to prevent or detect and correct misstatements, errors, or misappropriation on a timely basis by employees in the normal course of performing their assigned functions. Recommendation: The District should ensure bank reconciliations are being prepared and compared to the general ledger balance each month to investigate and resolve any variances in a timely manner. Repeat Finding: Yes. Views of Responsible Officials and Planned Corrective Actions: In the future, we will perform bank reconciliations and compare to the general ledger each month.

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. Repeat Finding: Yes. Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.

Condition: During our audit, we noted the bank reconciliations for the District’s checking, savings and ISJIT accounts were completed but not compared to the general ledger balance on a monthly basis to investigate and resolve any variances in a timely manner. Criteria: When performed timely and accurately bank reconciliations provide support for the cash position of the District and allow users a higher degree of confidence in the amount of cash reflected on the financial statements. Cause: It does not appear the District has established procedures to require bank reconciliations for checking, savings and ISJIT accounts be reconciled to the general ledger each month. Effect: Inadequate performance of bank reconciliations could adversely affect the District’s ability to prevent or detect and correct misstatements, errors, or misappropriation on a timely basis by employees in the normal course of performing their assigned functions. Recommendation: The District should ensure bank reconciliations are being prepared and compared to the general ledger balance each month to investigate and resolve any variances in a timely manner. Repeat Finding: Yes. Views of Responsible Officials and Planned Corrective Actions: In the future, we will perform bank reconciliations and compare to the general ledger each month.

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. Repeat Finding: Yes. Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.

Condition: During our audit, we noted the bank reconciliations for the District’s checking, savings and ISJIT accounts were completed but not compared to the general ledger balance on a monthly basis to investigate and resolve any variances in a timely manner. Criteria: When performed timely and accurately bank reconciliations provide support for the cash position of the District and allow users a higher degree of confidence in the amount of cash reflected on the financial statements. Cause: It does not appear the District has established procedures to require bank reconciliations for checking, savings and ISJIT accounts be reconciled to the general ledger each month. Effect: Inadequate performance of bank reconciliations could adversely affect the District’s ability to prevent or detect and correct misstatements, errors, or misappropriation on a timely basis by employees in the normal course of performing their assigned functions. Recommendation: The District should ensure bank reconciliations are being prepared and compared to the general ledger balance each month to investigate and resolve any variances in a timely manner. Repeat Finding: Yes. Views of Responsible Officials and Planned Corrective Actions: In the future, we will perform bank reconciliations and compare to the general ledger each month.

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. Repeat Finding: Yes. Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.

Condition: During our audit, we noted the bank reconciliations for the District’s checking, savings and ISJIT accounts were completed but not compared to the general ledger balance on a monthly basis to investigate and resolve any variances in a timely manner. Criteria: When performed timely and accurately bank reconciliations provide support for the cash position of the District and allow users a higher degree of confidence in the amount of cash reflected on the financial statements. Cause: It does not appear the District has established procedures to require bank reconciliations for checking, savings and ISJIT accounts be reconciled to the general ledger each month. Effect: Inadequate performance of bank reconciliations could adversely affect the District’s ability to prevent or detect and correct misstatements, errors, or misappropriation on a timely basis by employees in the normal course of performing their assigned functions. Recommendation: The District should ensure bank reconciliations are being prepared and compared to the general ledger balance each month to investigate and resolve any variances in a timely manner. Repeat Finding: Yes. Views of Responsible Officials and Planned Corrective Actions: In the future, we will perform bank reconciliations and compare to the general ledger each month.

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. Repeat Finding: Yes. Views of Responsible Officials and Planned Corrective Actions: Management is cognizant of this limitation and will implement additional procedures where possible.

Condition: During our audit, we noted the bank reconciliations for the District’s checking, savings and ISJIT accounts were completed but not compared to the general ledger balance on a monthly basis to investigate and resolve any variances in a timely manner. Criteria: When performed timely and accurately bank reconciliations provide support for the cash position of the District and allow users a higher degree of confidence in the amount of cash reflected on the financial statements. Cause: It does not appear the District has established procedures to require bank reconciliations for checking, savings and ISJIT accounts be reconciled to the general ledger each month. Effect: Inadequate performance of bank reconciliations could adversely affect the District’s ability to prevent or detect and correct misstatements, errors, or misappropriation on a timely basis by employees in the normal course of performing their assigned functions. Recommendation: The District should ensure bank reconciliations are being prepared and compared to the general ledger balance each month to investigate and resolve any variances in a timely manner. Repeat Finding: Yes. Views of Responsible Officials and Planned Corrective Actions: In the future, we will perform bank reconciliations and compare to the general ledger each month.