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Audit Objective

Determine whether the Board ensured that the District’s bank reconciliations were accurately prepared and independently reviewed.

Key Findings

• The bank reconciliations we reviewed were timely and, with the exception of the payroll account, accurate.
• The District’s book balance for the payroll bank account did not reflect the true cash balance.
• The bank reconciliations were reviewed by a District official who was not independent of recording cash and journal entry transactions.

Key Recommendations

The Board should:

• Ensure that the payroll account balance shown on the District’s books represents the true book balance.
• Ensure the review of bank reconciliations is performed by an individual who is independent of recording cash and journal entry transactions.

District officials generally agreed with our recommendations and indicated they plan to initiate corrective action.