Finding Text
Criteria: The District should be segregated so that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction.
Condition: Because of a limited number of available personnel, it is not always possible to adequately segregate certain incompatible duties so that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. The District has one full time bookkeeper, and accounts payable position to handle the accounting needs of the district. There are some mitigating controls in place but it is not possible to have segregation in all areas.
Effect: Risk is present that errors or irregularities in amounts that would be material to the basic financial statements may occur and not be detected within a timely period by employees in the normal course of preforming their assigned functions.
Recommendation: Because of limited resources and personnel, management may not be able to achieve a proper segregation of duties; however, our professional standards require that we bring this lack of segregation of duties to your attention in this report.
Views of responsible officials and planned corrective actions: The limited number of available personnel prohibits segregation of incompatible duties and the district does not have the resources to hire additional accounting personnel.