Finding Text
2024-001 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 accurateSeparation 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.
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. and reliable operating and accounting data.