Finding Text
2022-001 Segregation of Duties
Significant Deficiency
This is a repeat finding. The prior-year audit finding number is 2021-001
CONDITION: The School has limited personnel responsible for most accounting functions. The School has limited staff that includes one business manager for the public school district and one business manager for the BIE funds that are responsible to collect monies, deposit monies, deposit monies, issue checks, send checks to vendors, record receipts and disbursements in journals, maintain the general ledger and prepare bank reconciliations. Both of these managers are also check signers for the School. The School has not implemented sufficient mitigating controls to warrant a resolution to this finding. CRITERIA: To ensure adequate internal controls over financial reporting and prevent material misstatements due to error or fraud, there should be a segregation of the functions of approval, custody of assets, posting and reconciliations. CAUSE: The School does not have a large enough staff to properly segregate all duties. EFFECT: A lack of segregation of duties leads to a limited degree on internal controls.