Finding: 2022-001 ? Segregation of Duties Auditor Description of Condition and Effect: During our audit, we noted the following areas in which the District should improve segregation of duties: The District does not have procedures in place to allow for an independent review of payroll registers when payroll disbursements are made and recorded in the accounting records. The District currently does not have procedures in place to allow for an independent review of manual journal entries As a result of this condition, the District is exposed to increased risk that misstatements, whether caused by error or fraud, could occur and not be detected by management on a timely basis. Auditor Recommendation: The District should evaluate its processes and procedures to ensure that a sufficient segregation of incompatible duties exists. Corrective Action: The District will implement a review and approval process for payroll; manual journal entries are entered by one employee and approved and posted by a separate employee, which allows for segregation of duties. The Business office will continue to evaluate the cost benefits of additional segregation of duty procedures on an ongoing basis. Responsible Person: Shelbi Frayer, Contracted Finance Director Anticipated Completion Date: June 30, 2022