Finding Text
Finding #2022-001 - Segregation of Duties Condition: The available office staff precludes a proper segregation of duties in the following control areas: cash receipts/revenues, cash disbursements, payroll, human resources and grant claims processing. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Due to the small size of the District, there is only one person in the accounting department who records all transactions and performs all reconciliations. Criteria: Internal controls should be in place that provides adequate segregation of duties. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but due to the size of our District and financial constraints, we do not believe it is cost effective to increase the office staff in attempt to bring about more effective segregation of duties. The Board of Education reviews and approves a monthly treasurer?s report with all receipts, payroll and disbursements. Pay is based on contracts, salary schedules and letters of assignment, all of which are approved by the Board of Education. The District Administrator reviews and approves purchase orders and grant claims. The Administrator reviews and approves bank statements and cash reconciliations.