Finding 42414 (2022-003)

Criteria or specific requirement: The accounting function should be controlled by a sufficient number of individuals in order to have adequate segregation of duties. Condition: The District's accounting function is controlled by a limited number of individuals resulting in the inadequate segregation of duties. Context: The District's accounting function is mainly controlled by one bookkeeper. Effect: The limited number of personnel limits the overall effectiveness of internal control. Cause: The District is unable to hire an adequate number of staff to increase the effectiveness of internal control. Recommendation: The District needs to segregate duties where possible and create checks and balances. The Board should be aware of this problem and closely review and approve all financial related information. Management's response: The District is reviewing its financial policies and procedures to better segregate duties where possible. The Superintendent will make the Board aware of their responsibility in regards to reviewing and approving financial items and asking questions.