Finding Text
2022-001 SEGREGATION OF ACCOUNTING FUNCTIONS Criteria Accounting and financial duties should be segregated to reduce the ability of individuals to both commit and conceal instances of fraud to a low level. Condition and Context Accounting and financial duties are not sufficiently segregated to reduce the risk of fraud to an acceptable low level. Questioned Costs None Cause The District has a limited number of personnel involved in the accounting functions. Potential Effect Improper segregation of duties could cause misstatements, caused by error or fraud to occur and not be detected. Recommendation The cost of additional personnel to properly segregate accounting and financial responsibilities would appear to outweigh the benefits received. However, the management and Board of Education should constantly be aware of the possibility that errors, or fraud could occur, and continue current practices mitigating these possibilities and examine and implement other mitigating controls when appropriate. Identification of major programs: Child Nutrition Cluster 10.555, 10.559 Education Stabilization Fund (ESF)ARP Act ESSERS III 84.425