Finding 236263 (2022-001)

2022-001 Inadequate segregation of accounting functions Criteria: A strong internal control system requires the segregation of responsibilities between different individuals responsible for separate major areas of the accounting system. Condition: Due to the small number of accounting personnel, the District did not have adequate segregation of functions within its accounting system. Cause: The failure to design and implement policies and procedures necessary to achieve adequate internal control led to this condition. Effect: The likelihood that a material misstatement will not be prevented or detected and corrected on a timely basis is increased. The perpetration of fraudulent activity is easier to achieve under this condition. Recommendation: An analysis of the benefits that would be obtained by adequately segregating functions within the accounting system and the costs to employ additional individuals to achieve adequate segregation should be performed. Views of Responsible Officials and Planned Corrective Actions: This information is in the District?s separate Management?s Corrective Action Plan for Current Year Findings.