Denver City Independent School District

Criteria: Management should establish oversight responsibilities and enforce accountability for internal control procedures. Condition: There was a lack of clear responsibilities for oversight and ensuring that personnel are accountable for their internal control duties for most of the year. New personnel took over in July of 2023 and worked to get things back in control. Effect: Accounting processes can be performed incorrectly or not be performed entirely. Cause: Management being overwhelmed and not in control for the first 10 months of the year. Recommendation: New CFO and Superintendent have been hired and should be providing oversight of the internal control structure and hold personnel responsible3 for their duties. Management response/corrective action plan: See page 79.

Criteria: Management should establish monitoring activities to monitor internal control systems and evaluate results. Condition: Management failed to monitor certain functions within the internal control system for the first ten months of the year. Effect: Oversight was not provided and this resulted in bank reconciliations not done being completed in a timely manner. Cause: Management being overwhelmed and not in control for the first 10 months of the year. Recommendation: The CFO should have processes for monitoring internal controls and provide training to personnel as needed: Management response/corrective action plan: See page 79.

Condition: Our testing in the area of cash disclosed that monthly reconciliations were not being performed accurately or timely for most of the year. The new personnel work diligently to get the bank accounts reconciled and up to date with the help of the Service Center. There were still unreconciled balances that were not identified. Effect: Accounting processes can be performed incorrectly or not be performed entirely. Recommendation: New CFO and Superintendent have been hired and together are working diiigently to get a starting point on the bank account and work forward. We recommend the District provide personnel training and processes to verify that all l accounts are reconciled to the general ledger monthly, and those reconciliations are properly reviewed and approved. Management response/corrective action plan: See page 79.