INTERNAL CONTROLS AND FRAUD PREVENTION
In consideration of the issues raised at the Ridgefield School District, Michael asked me to put together some information for the board on the internal controls in place at Woodland School District to prevent fraud. Regardless of the accounting area, there are two main areas of importance in preventing fraud: segregation of duties and oversight/review. In a district the size of Woodland with limited accounting staff, segregation of duties is not always possible, so the need for review is even more important. I will review some of the main accounting areas and identify the various internal controls in place to prevent fraud.
CASH RECEIPTING - BUILDINGS
All buildings within the district perform some form of cash receipting (with the exception of TEAM High). All buildings have at least two staff members who work together to collect and deposit cash receipts. Controls in place:
CASH RECEIPTING - BUSINESS OFFICE/DISTRICT OFFICE
All cash/checks are received by Margaret (with the exception of the facility use fees). Controls in place:
PURCHASING/ACCOUNTS PAYABLE - ALL DISTRICT BUILDINGS/DEPARTMENT
Conversion to the Wespac system has streamlined and strengthened the controls surrounding purchasing throughout the district. Controls in place:
PERSONNEL - BUSINESS OFFICE
The addition of a second staff member to the payroll/personnel functions have improved the controls in this area. Specific personnel controls in place:
PAYROLL - BUSINESS OFFICE
As noted above, the addition of another person to the payroll processing has strengthened the segregation of duties surrounding the payroll function. Specific payroll controls in place: