Finding Text
Finding Number 2025-005: Criteria or specific requirement: The accounting function should be controlled by a sufficient number of individuals in order to have adequate segregation of duties. Condition: The District's accounting function is controlled by a limited number of individuals resulting in the inadequate segregation of duties. Context: The District's accounting function is mainly controlled by one bookkeeper, one payroll clerk, and one administrative assistant. Effect: The limited number of personnel hinders the overall effectiveness of internal control. Cause: The District is unable to hire an adequate number of staff to increase the effectiveness of internal control. Recommendation: The District should segregate duties where possible. The Board should be aware of this issue and closely review and approve all financial related information. Management's Response: The District has reviewed and continues to review its financial policies and procedures to better segregate duties where possible. The Superintendent continually reminds the Board about their responsibility in regards to reviewing and approving financial items and asking questions. It is not cost-feasible to hire additional personnel.