Finding Text
Finding #2023-001 – Limited Segregation of Duties (Prior Year Finding #2022-001)
Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed.
Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis.
Cause: Controls Over Accounts Payable/Disbursements
1. Person processing accounts payable is not always separate from those who print the checks.
Controls Over Payroll
1. Person preparing the payroll is not independent of other personnel duties such as custody of the checks and reconciling the bank statements.
Criteria: Internal controls should be in place that provide 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 an attempt to bring about a more effective segregation of duties. The Principal at the High School or Elementary/Middle School approves monthly accounts payable checks and the Department Head or Principal approves payroll timesheets prior to processing payroll. The Principals and Department Heads will continue to monitor transactions of the District.