Finding 39581 (2022-002)

2022-002 Lack of Adequate Segregation of Duties Condition: The Size of the District's office staff precludes an adequate segregation of accounting and reporting functions necessary to ensure an adequate internal control system. Criteria: We are required to report on whether the District has appropriate segregation of duties relating to all aspects of its bookkeeping and accounting procedures. Good internal control requires a complete separation of duties with respect to the handling and recording of transactions. Cause: The additional costs of hiring additional support staff to achieve complete segregation of duties would outweigh the derived benefits. Effect: Proper segregation of duties in the system of control is not accomplished. Identification of a Repeat Finding: This is a repeat finding from previous audits, see 2021-002. Recommendation: The District should continue to evaluate the cost/benefit of hiring additional support staff to achieve complete segregation of duties. The Board of Education should remain involved with review of and oversight regarding the District's financial statements and budgets.