Analysis Of The Legislative Joint Auditing Committee Audited

1173 Words Jun 3rd, 2016 5 Pages
Summary of District Audit
In 2015, the Legislative Joint Auditing Committee audited Hector School District. In the Summary of Auditor’s Results and Financial Statement Findings, the auditors did indicate a material weakness in internal control. Here, the specific requirement noted that management is where the responsibility falls for implementing sound accounting policies and maintaining internal control over financial procedures that are consistent with their own assertions found in the financial statements. The stated condition for this material weakness was that the district failed to segregate financial duties among qualified employees. Instead, one sole employee was in charge of all of the financial accounting duties. Thus, the school district could not assure reliable financial reporting, because they could not prevent or detect a material misstatement in their financial statements.
The report went on to further note the effect this material weakness had on the school district. Because of this particular internal control weakness, the school district’s ability to authorize, record, and report on their financial situation and assets was compromised. The cause of this weakness falls back to the district’s financial restraints, which prevented them from being able to hire additional, qualified employees that could assist in the accounting/financial aspects. The Legislative Joint Auditing Committee recommended that the district choose and implement sound accounting…
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