Finding 578574 (2023-001)

Finding 2023-1 - Lack of Segregation of Duties CONDITION: Lack of segregation of duties due to the small number of employees involved in the accounting function of the District. CRITERIA: Segregation of duties should be in place to provide reasonable assurance that the financial statement is fairly stated and free of material misstatements. CAUSE: Small number of employees in the accounting function makes proper segregation of duties impossible. POTENTIAL EFFECT OF CONDITION: Errors or irregularities could occur that would not be prevented or detected in a timely manner that would cause a misstatement of the financial statement that is more than inconsequential. RECOMMENDATION: To mitigate this deficiency we recommend that the Superintendent and Board of Education consider this condition while performing their monitoring and review of the financial statement activity and reports. CLIENT RESPONSE: The District is in agreement with this finding. The District's response is in the attached Corrective Action Plan.