Finding Text
Finding #2023-001- Lack of Segregation of Duties (This was a 2022 finding)
Condition: The limited size of the District’s office staff prevents the ideal separation of functions. The Accounts Payable/Payroll Administrative Assistant prints accounts payable checks, has access to the password to print electronic signatures and performs bank reconciliations. The Accounts Payable/Payroll Administrative Assistant also performed payroll functions during the previous year.
Criteria: Internal controls should be in place that provide adequate segregation of duties.
Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis.
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 prior to mailing accounts payable checks. The Business Official also reviews accounts payable checks, bank reconciliations and payroll for accuracy.