SCHOOL DISTRICT OF GREEN LAKE

Criteria: The District should segregate accounting duties, at a minimum to separate the asset and the recordkeeping function, to minimize the opportunity for misstatements caused by error or fraud to occur and go undetected within a timely period by employees in the normal course of performing their assigned functions. Condition: The District does not have adequate segregation of duties in its accounting functions. Specifically, one individual is responsible for the entire payroll process. Also, the individual has the ability to cut checks, print the automatic signatures on checks, and performs the bank reconciliation. Cause: One individual with the District performs substantially all accounting functions and has control over both the records and the assets. Effect or Potential Effect: The lack of segregation of accounting duties could create an opportunity for misstatements caused by error or fraud to occur and go undetected within a timely period by employees in the normal course of performing their assigned functions. Recommendation: When this condition exists, the Administrator's and School Board's close supervision, review of accounting information and knowledge of matters relating to the District's operations provide the most effective means of preventing and detecting errors and irregulatities.