Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.
Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.
Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.
Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.
Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.
Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.
Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.
Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.
Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.
Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.
Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.
Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.
Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.
Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.
Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.
Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.
Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.
Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.
Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.
Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.
Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.
Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.
Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.
Segregation of Duties
Condition:
The School District does not have enough staff to implement certain internal controls that would be preferred to provide optimum segregation of duties.
Criteria or Specific Requirement:
A good system of internal control allows for segregation of duties between authorization, custody, record-keeping, and reconciliation.
Context:
Although there is some oversight from Board members, and there is division of certain duties, the members of management are still able to perform and oversee most accounting functions, including receipting and depositing of revenue, initiating and approving invoices, writing and signing checks, and preparation and review of financial reports.
Effect:
When one individual is able to perform multiple accounting functions, without oversight on a day-to-day basis, intentional or unintentional errors could be made and not detected, transactions could be reported in improper categories, and steps could be taken to cover up fraud.
Cause:
The School District has limited staffing resources with skills, experience, and competency to participate in the financial reporting process.
Recommendation:
While additional staff would be ideal to segregate the duties to a fuller extent, we realize that may not be possible due to limited resources. Therefore, we recommend that the Board and management continue to review, implement and monitor their financial procedures to segregate duties to the extent possible. We also encourage Board involvement in oversight, questioning transactions, and reviewing the financial reports monthly.
Response:
Management is aware of the above finding, but believes the cost of hiring additional employees outweighs any benefit it would receive due to limited resources of the District. The District feels it has mitigating controls in place to reduce the risks associated with the organizational structure, including the approval process for all expenditures, which involves the School Board.