Finding Text
Finding #2023-001 – Segregation of Duties (Prior year finding #2022-001)
Condition: The available office staff precludes a proper segregation of duties in the following control areas: cash receipts/revenues, payroll, cash disbursements, HR, 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 bookkeeping department, who records all transactions and performs all reconciliations.
Criteria: Checks and balances should be in place to allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct any misstatements on a timely basis.
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 Board of Education reviews a monthly treasurer’s report and approves all disbursements. The District has also hired a part-time accounting assistant to help segregate some duties.