Finding #2023-001 – 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, HR, and grant claims processing.
Effect: Because of the lack of segregation of duties, 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 bookkeeping department, who records all transactions and performs all reconciliations.
Criteria: Checks and balances should be in place to allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct any misstatements on a timely basis.
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 a more effective segregation of duties. The Board of Education reviews a monthly treasurer’s report and approves all disbursements. The District has also hired a part-time accounting assistant to help segregate some duties.
Finding #2023-003 – Material Adjustments (Prior year finding #2022-003)
Condition: Johnson Block and Company, Inc. proposed numerous adjusting journal entries. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness exists in the District’s internal controls.
Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner.
Cause: Financial information was not recorded in a timely manner and material adjustments were required in order to correct various transactions.
Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness.
Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner.
Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditors. In addition, new finance accounting staff are receiving training to assist with correcting this finding.
Finding #2023-001 – 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, HR, and grant claims processing.
Effect: Because of the lack of segregation of duties, 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 bookkeeping department, who records all transactions and performs all reconciliations.
Criteria: Checks and balances should be in place to allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct any misstatements on a timely basis.
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 a more effective segregation of duties. The Board of Education reviews a monthly treasurer’s report and approves all disbursements. The District has also hired a part-time accounting assistant to help segregate some duties.
Finding #2023-003 – Material Adjustments (Prior year finding #2022-003)
Condition: Johnson Block and Company, Inc. proposed numerous adjusting journal entries. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness exists in the District’s internal controls.
Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner.
Cause: Financial information was not recorded in a timely manner and material adjustments were required in order to correct various transactions.
Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness.
Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner.
Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditors. In addition, new finance accounting staff are receiving training to assist with correcting this finding.
Finding #2023-001 – 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, HR, and grant claims processing.
Effect: Because of the lack of segregation of duties, 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 bookkeeping department, who records all transactions and performs all reconciliations.
Criteria: Checks and balances should be in place to allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct any misstatements on a timely basis.
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 a more effective segregation of duties. The Board of Education reviews a monthly treasurer’s report and approves all disbursements. The District has also hired a part-time accounting assistant to help segregate some duties.
Finding #2023-003 – Material Adjustments (Prior year finding #2022-003)
Condition: Johnson Block and Company, Inc. proposed numerous adjusting journal entries. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness exists in the District’s internal controls.
Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner.
Cause: Financial information was not recorded in a timely manner and material adjustments were required in order to correct various transactions.
Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness.
Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner.
Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditors. In addition, new finance accounting staff are receiving training to assist with correcting this finding.
Finding #2023-001 – 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, HR, and grant claims processing.
Effect: Because of the lack of segregation of duties, 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 bookkeeping department, who records all transactions and performs all reconciliations.
Criteria: Checks and balances should be in place to allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct any misstatements on a timely basis.
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 a more effective segregation of duties. The Board of Education reviews a monthly treasurer’s report and approves all disbursements. The District has also hired a part-time accounting assistant to help segregate some duties.
Finding #2023-003 – Material Adjustments (Prior year finding #2022-003)
Condition: Johnson Block and Company, Inc. proposed numerous adjusting journal entries. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness exists in the District’s internal controls.
Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner.
Cause: Financial information was not recorded in a timely manner and material adjustments were required in order to correct various transactions.
Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness.
Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner.
Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditors. In addition, new finance accounting staff are receiving training to assist with correcting this finding.
Finding #2023-001 – 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, HR, and grant claims processing.
Effect: Because of the lack of segregation of duties, 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 bookkeeping department, who records all transactions and performs all reconciliations.
Criteria: Checks and balances should be in place to allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct any misstatements on a timely basis.
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 a more effective segregation of duties. The Board of Education reviews a monthly treasurer’s report and approves all disbursements. The District has also hired a part-time accounting assistant to help segregate some duties.
Finding #2023-003 – Material Adjustments (Prior year finding #2022-003)
Condition: Johnson Block and Company, Inc. proposed numerous adjusting journal entries. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness exists in the District’s internal controls.
Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner.
Cause: Financial information was not recorded in a timely manner and material adjustments were required in order to correct various transactions.
Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness.
Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner.
Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditors. In addition, new finance accounting staff are receiving training to assist with correcting this finding.
Finding #2023-001 – 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, HR, and grant claims processing.
Effect: Because of the lack of segregation of duties, 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 bookkeeping department, who records all transactions and performs all reconciliations.
Criteria: Checks and balances should be in place to allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct any misstatements on a timely basis.
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 a more effective segregation of duties. The Board of Education reviews a monthly treasurer’s report and approves all disbursements. The District has also hired a part-time accounting assistant to help segregate some duties.
Finding #2023-003 – Material Adjustments (Prior year finding #2022-003)
Condition: Johnson Block and Company, Inc. proposed numerous adjusting journal entries. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness exists in the District’s internal controls.
Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner.
Cause: Financial information was not recorded in a timely manner and material adjustments were required in order to correct various transactions.
Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness.
Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner.
Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditors. In addition, new finance accounting staff are receiving training to assist with correcting this finding.