We acknowledge the auditor’s comment regarding segregation of duties in the handling and recording of cash receipts. The district recently transitioned to a new accounting software system, which has prompted a review and adjustment of internal procedures to strengthen internal controls. As part of this transition, we are actively training building secretaries to assume greater responsibility in the initial steps of the cash receipt process. Specifically, secretaries will be responsible for:
• Receiving and documenting cash and checks at their respective buildings.
• Preparing and depositing funds directly at the bank.
• Completing a cash receipt form and forwarding it, along with deposit confirmation, to the business office.
The business office staff will then independently record the transactions into the accounting system, ensuring a clear segregation between the receipt of funds and their entry into the general ledger.
We anticipate full implementation of this updated process by 8/2025, with training sessions and support ongoing to ensure consistency and compliance across all buildings.
We believe this revised procedure addresses the concern by separating duties between collection/deposit and system entry, thereby reducing the risk of errors or misappropriation.