Finding 46103 (2022-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-03-04

AI Summary

  • Core Issue: The small office staff limits the separation of duties, leading to potential errors in financial processes.
  • Impacted Requirements: Lack of checks and balances increases the risk of undetected mistakes or fraud.
  • Recommended Follow-Up: Implement procedures to segregate duties among staff, while management stays informed about operations.

Finding Text

Finding #2022-001 - Segregation of Duties Condition: The limited size of the District?s office staff prevents the ideal separation of functions. The bookkeeper prints accounts payable checks, has access to the password to print electronic signatures and performs bank reconciliations. The bookkeeper also performed all payroll functions during 2021/22. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Limited number of personnel. 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 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 reviews and approves all expenditures on a monthly basis prior to mailing accounts payable checks.

Corrective Action Plan

Finding #2022-001 - Segregation of Duties Condition: The limited size of the District?s office staff prevents the ideal separation of functions. The bookkeeper prints accounts payable checks, has access to the password to print electronic signatures and performs bank reconciliations. The bookkeeper also performed all payroll functions during 2021/22. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Limited number of personnel. 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 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 reviews and approves all expenditures on a monthly basis prior to mailing accounts payable checks. Contact Person: John Costello Anticipated Completion: Ongoing.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 46104 2022-003
    Material Weakness
  • 46105 2022-001
    Material Weakness
  • 46106 2022-003
    Material Weakness
  • 46107 2022-001
    Material Weakness
  • 46108 2022-003
    Material Weakness
  • 622545 2022-001
    Material Weakness
  • 622546 2022-003
    Material Weakness
  • 622547 2022-001
    Material Weakness
  • 622548 2022-003
    Material Weakness
  • 622549 2022-001
    Material Weakness
  • 622550 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
32.009 Emergency Connectivity Fund Program $105,806
84.425 Education Stabilization Fund $99,117
10.553 School Breakfast Program $83,883
84.010 Title I Grants to Local Educational Agencies $67,295
84.358 Rural Education $40,928
93.778 Medical Assistance Program $35,538
10.555 National School Lunch Program $31,247
84.027 Special Education_grants to States $28,351
84.367 Improving Teacher Quality State Grants $16,293
84.173 Special Education_preschool Grants $10,718
84.048 Career and Technical Education -- Basic Grants to States $3,803
84.424 Student Support and Academic Enrichment Program $2,122
10.649 Pandemic Ebt Administrative Costs $614