Finding Text
SEGREGATION OF DUTIES: CRITERIA-MANAGEMENT IS RESPONSIBLE FOR ESTABLISHING AND MAINTAINING INTERNAL CONTROL. A GOOD SYSTEM OF INTERNAL CONTROL PROVIDES FOR ADEQUATE SEGREGATION OF DUTIES SO NO ONE INDIVIDUAL HANDLES A TRANSACTION FROM ITS INCEPTION TO COMPLETION. IN ORDER TO MAINTAIN PROPER INTERNAL CONTROL, DUTIES SHOULD BE SEGREGATED SO THE AUTHORIZATION, CUSTODY AND RECORDING OF TRANSACTIONS ARE NOT UNDER THE CONTROL OF THE SAME EMPLOYEE. THIS SEGREGATION OF DUTIES HELPS PREVENT LOSSES FROM EMPLOYEE ERROR OR DISHONESTY AND MAXIMIZES THE ACCURACY OF THE DISTRICT'S FINANCIAL STATEMENTS. CONDITION - AN INDEPENDENT PERSON DOES NOT OPEN THE MAIL AND PREPARE AN INITIAL LISTING OF THE CHECKS RECEIVED AND LATER COMPARE THE LISTING TO THE RECEIPTS ISSUED. ALSO, VOUCHERS ARE PROCESSED, CHECKS PREPARED AND DISBURSEMENTS ARE RECORDED BY THE SAME PERSON. IN ADDITION, RECONCILING AND PREPARING OF FINANCIAL REPORTING AND ENTERING ADJUSTING JOURNAL ENTRIES ARE ALL DONE BY THE SAME PERSON.