Finding Text
Significant Deficiency ? Limited Segregation of Duties Criteria: Internal controls should be in place to provide reasonable assurance that individuals have access to only one phase of the accounting process. Condition: The size of the office staff precludes segregation of accounting functions complete to assure adequate internal control. The Business Manager prepares bank reconciliations and posts cash receipts and disbursements to the District?s general ledger. Effect: Because of the lack of segregation of duties, there is a risk that the accounting records may be misstated or reports may be completed improperly and may not be prevented or detected and corrected on a timely basis. Recommendation: To address the control deficiency relative to the cash receipts and cash disbursement cycles, we recommend that an employee other than the District Account review the monthly bank reconciliation.