Finding Text
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The limited size of the District?s office staff prevents the ideal separation of functions. The bookkeeper prints payroll checks, sends payroll files to the bank, and has access to the password to print electronic signatures. The Business Manager has access to manual checkbooks, has access to the stamped signatures, and is involved in the bank reconciliation process. Criteria: Internal controls should be in place that provide adequate segregation of duties. Effect: Failure to properly segregate duties may allow for errors or irregularities to occur and not be detected in a timely manner by employees in the normal course of performing their assigned functions. Cause: Limited number of personnel. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Board reviews and approves all expenditures on a monthly basis, and the Business Manager reviews the payroll files prior to payroll processing.