Audit 405239

Lack of segregation of duties - significant deficiency Condition: Lack of segregation of duties over fiancial processes. Criteria: For an effective control system, division of accounting duties should exist to prevent errors or misappropriations from going undetected in the course of employees performing their assigned duties. Context: The lack of segregation of duties exists within the Authority as a whole over all of its accounting and reporting functions. This is a common circumstance in governments of similar size. Effect: Errors or misappropriations could occur and go undetected for a period of time. Questioned Costs: Not applicable Cause: Limited number of staff available to appropriately divide duties. Recommendation: The Authority's board memebers need to be cognizant of the issue and provide appropriate oversight. Such oversight includes careful review of bank activity as well as general ledger and journal entries. The board members should also periodically perform on site inspections of assets and financial records. Views of Responsible Officials and Corrective Actions: The Authority agrees with the recommendations and has approved a corrective action plan addressing additional oversight measures.