Finding 46047 (2022-002)

FINDINGS - FINANCIAL STATEMENTS AUDIT SIGNIFICANT DEFICIENCIES 2022-001 Separation of Duties Criteria: An effective internal control structure of an organization will include procedures and actions to: 1. Protect its assets against theft and waste. 2. Ensure compliance with the organization's policies, procedures and statutory requirements. 3. Evaluate the performance of personnel to promote efficient operations. 4. Ensure accurate and reliable operating and accounting data. Separation of duties requires that someone other than the employee responsible for safeguarding the asset must maintain the accounting records for that asset. When an organization separates duties of the employees, it minimizes the probability of an error or irregularity occurring and not being timely detected Condition: Due to the small size of the accounting department of the District, the possibility of adequate separation of duties over certain transaction cycles is limited. Recommendation: While we recognize that it is impractical for the District to achieve complete separation of duties over all transaction cycles within the District, it is important that the Board be aware of the chance of errors and irregularities not being timely detected is elevated. Auditee Response: The District has separated duties to the extent possible and has implemented compensating controls to monitor the accounting activities. FINDINGS - MAJOR FEDERAL AWARDS PROGRAMS AUDIT U.S. Department of Education, Educational Stabilization Fund (CFDA 84.425) and U.S. Department of Treasury, CARES (CFDA 21.019) 2022-002 Separation of Duties Reportable Condition: Refer to Item 2021-001 in the Findings - Financial Statements Audit for discussion regarding this item.