Audit 384352

2025-003 U.S. Department of Education, Special Education Cluster (CFDA 84.027 and 84.173),U.S. Department of Education, Title 1 Grants to Local Education Agencies (CFDA 84.010) U.S. Department of Agriculture, Child Nutrition Cluster (CFDA 10.553 and 10.555)2025-001 Separation of Duties Criteria: An effective internal control structure of an organization will include procedures and actions to: 1. Protect its assets against theft and waste. 2. Ensure compliance with the organization's policies, procedures and statutory requirements. 3. Evaluate the performance of personnel to promote efficient operations. 4. Ensure accurate and reliable operating and accounting dataSeparation of duties requires that someone other than the employee responsible for safeguarding the asset must maintain the accounting records for that asset. When an organization separates duties of the employees, it minimizes the probability of an error or irregularity occurring and not being timely detected Condition: Due to the small size of the accounting department of the District, the possibility of adequate separation of duties over certain transaction cycles is limited. Potential Effect of Condition: There is an increased risk that errors or irregularities might not be detected in a timely manner in the course of employees performing their assigned duties. Recommendation: While we recognize that it is impractical for the District to achieve complete separation of duties over all transaction cycles within the District, it is important that the Board be aware of the chance of errors and irregularities not being timely detected is elevated. Auditee Response: The District has separated duties to the extent possible and has implemented compensating controls to monitor the accounting activities.