Finding 1208194 (2025-001)

Condition: Financial reporting and compliance tasks are often times being performed by one employee. Criteria: Segregation of duties should be in place to strengthen internal control over financial reporting and compliance. Cause: The District has administrative employees performing many tasks with little or no review. Effect: Because many of the financial related and compliance tasks are being performed by one employee, financial reporting errors and noncompliance can occur without the issue being timely detected. Recommendation: We recommend separating duties to the extent possible including the use of purchase requisitions for all purchasing and requiring approval of all journal entries. In addition, all employees assigned with these duties should obtain relevant training.