CCSD given clean bill of health in annual audit

Crook County School District has been given a clean bill of health on its annual audit, with the only concern of note being the same issue that affects almost every institution in this small county.

Namely, separation of duties.

Auditor Paul Stille wrote in his schedule of findings that an effective internal control structure includes procedures to protect against theft and waste, ensure compliance with policies, promote efficient operations and ensure accurate operating and accounting data.

This requires that someone other than the employee who is responsible for safeguarding an asset must maintain its accounting records.

However, due to the small size of the district’s accounting department, there’s only a limited possibility of adequately separating duties.

Stille recommended that, while it is impractical for the district to achieve complete separation of duties for all transaction cycles, “It is important that the board [of trustees] be aware of the chance that errors and irregularities may not be timely detected.”

He also noted that the district has separated duties to the extent possible and implemented compensating controls to monitor accounting activities.

This issue affects both regular accounting activities and major federal award programs, such as the Education Stabilization Fund and the CARES Act: Higher Education Emergency Relief Fund.

Other than separation of duties, Stille found no causes for concern within the district’s accounts.