Finding 2022-001: Lack of Segregation of Duties Repeat of Finding 2021-001 Criteria: Internal controls should be in place that provides reasonable assurance that individuals have access to only one phase of the accounting process. Condition: There is a lack of segregation of duties related to the payroll function. Cause: The same person performs tasks, which under ideal situations, should be segregated from each other. Effect: Because of the lack of segregation of duties, the accounting records may be misstated. Recommendation: The District board and management should rely more heavily on their direct knowledge of the District's operations and day-to-day contact with employees to control and safeguard assets. Management's Response: Although some segregation of duties issues exist due to the limited number of personnel, management believes that certain controls are in place to mitigate these issues, such as a review of bank reconciliation, payroll reports and journal entries by the administrator, other members of management and/or Board of Education members who possess the skills, knowledge and experience related to these processes to identify and correct errors.