Finding Text
The School District's office does not have an adequate segregation of duties in certain accounting areas consistent with control objectives. The limited number of individuals to share responsibilities for access to assets and accounting records makes it difficult to mitigate the control weakness. The Bookkeeper is involved in many aspects of a transaction. For example, in cash disbursement transactions the Bookkeeper prepares the checks, record the transactions, and prepares the bank reconciliation. The bookkeeper performed most of the accounting functions, resulting in a lack of segregation of duties. The cause of the finding is limited accounting staff to separate the different accounting functions. We recommend the Superintendent and the Board of Education closely supervise and review accounting information as the best way to prevent or detect errors or irregularities. Management agrees with the finding and will continue oversight responsibility.