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Clark County School District EIDE BAILLY INTERNAL CONTROLS EXAMINATION REPORT Internal Controls Examination Report Date: August 2, 2019 CLARK COUNTY SCHOOL DISTRICT Reference 6.01(A) Jason Goudie Page 1 of 100 September 26, 2019 EIDE BAILLY INTERNAL CONTROLS EXAMINATION REPORT TABLE OF CONTENTS EXECUTIVE SUMMARY ............................................................................................................................................................................. 8 METHODOLOGY ...................................................................................................................................................................................... 9 FRAUD CONTROL ACTIVITIES ................................................................................................................................................................10 PREVENTATIVE CONTROLS .......................................................................................................................................................................... 10 PROPER SEGREGATION OF DUTIES ......................................................................................................................................................... 10 PROPER AUTHORIZATION ..................................................................................................................................................................... 10 PHYSICAL SAFEGUARDS ........................................................................................................................................................................ 11 DETECTIVE CONTROLS................................................................................................................................................................................ 11 INDEPENDENT CHECKS.......................................................................................................................................................................... 11 ADEQUATE DOCUMENTATION & RECORDS .............................................................................................................................................. 11 CENTRALIZED PROCEDURES ..................................................................................................................................................................12 BUDGETING PROCESS ................................................................................................................................................................................ 12 STRATEGIC BUDGETS (SCHOOLS) ............................................................................................................................................................ 12 BUDGET TRANSFER PROCESS ................................................................................................................................................................. 13 PURCHASING ............................................................................................................................................................................................ 14 PURCHASING CARDS (P-CARDS) ............................................................................................................................................................. 14 PAYROLL .................................................................................................................................................................................................. 15 INTERNAL CONTROLS SURVEY ...............................................................................................................................................................16 DO YOU HAVE CONCERNS OF FRAUD WITHIN THE SCHOOL DISTRICT? ............................................................................................................ 16 DO YOU FEEL INTERNAL CONTROLS ARE IN PLACE TO PREVENT FRAUD WITHIN THE SCHOOL DISTRICT? ........................................................... 17 ARE YOU AWARE IF THE SCHOOL DISTRICT HAS A WRITTEN POLICY IN PLACE EXPLAINING WHAT CONSTITUTES FRAUD AND THE RELATED CONSEQUENCES? ...................................................................................................................................................................................... 18 IS THERE A REPORTING SYSTEM IN PLACE FOR YOU TO REPORT SUSPECTED FRAUD CONCERNS?....................................................................... 19 INTERNAL CONTROLS RECOMMENDATIONS ..........................................................................................................................................20 GENERAL SCHOOL DISTRICT RECOMMENDATIONS ........................................................................................................................................ 21 GENERAL OBSERVATIONS – SCHOOL LEVEL ................................................................................................................................................. 22 INTERNAL CONTROL STRENGTHS............................................................................................................................................................ 22 RECOMMENDATIONS ............................................................................................................................................................................ 23 ACCOUNTS PAYABLE ................................................................................................................................................................................. 24 INTERNAL CONTROL STRENGTHS............................................................................................................................................................ 24 RECOMMENDATIONS ............................................................................................................................................................................ 24 ADMINISTRATIVE SERVICES ........................................................................................................................................................................ 25 Reference 6.01(A) forensics.eidebailly.com Page 2 of 100 EIDE BAILLY INTERNAL CONTROLS EXAMINATION REPORT INTERNAL CONTROL STRENGTHS............................................................................................................................................................ 25 RECOMMENDATIONS ............................................................................................................................................................................ 25 BUDGET.................................................................................................................................................................................................... 26 INTERNAL CONTROL STRENGTHS............................................................................................................................................................ 26 RECOMMENDATIONS ............................................................................................................................................................................ 26 BUILDING DEPARTMENT............................................................................................................................................................................. 27 INTERNAL CONTROL STRENGTHS............................................................................................................................................................ 27 RECOMMENDATIONS ............................................................................................................................................................................ 27 BUSINESS AND FINANCE ............................................................................................................................................................................ 28 INTERNAL CONTROL STRENGTHS............................................................................................................................................................ 28 RECOMMENDATIONS ............................................................................................................................................................................ 28 CENTRAL INFORMATION SERVICES .............................................................................................................................................................. 29 INTERNAL CONTROL STRENGTHS............................................................................................................................................................ 29 RECOMMENDATIONS ............................................................................................................................................................................ 29 COLLEGE CAREER AND EQUITY ................................................................................................................................................................... 30 INTERNAL CONTROL STRENGTHS............................................................................................................................................................ 30 RECOMMENDATIONS ............................................................................................................................................................................ 30 COMPLIANCE AND BUILDING OPERATIONS
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