Finding Text
Segregation of Duties Criteria-A good system of internal control contemplates an adequate separation of duties so that no one individual handles a transaction from its inception to its completion. Condition-In our judgment, the Council’s staff is not large enough to permit adequate segregation of duties as reported above. This lack of segregation of duties does not allow management to detect and correct a material misstatement if present. Due to the size of the Council’s staff, it is anticipated that this will be an ongoing finding. Cause-The Council’s staff is not large enough to permit adequate separation of duties. Effect-There is a resulting danger that intentional fraud or unintentional errors could occur and not be detected. Context-Council staff have limited segregation of duties for all transactions of the entity. Repeat Finding-This finding was reported in the immediately prior audit as Finding 2023-001. Recommendation-In our judgment, management and those charged with governance need to understand the importance of this communication. However, due to the lack of resources available to management to correct this weakness, we recommend that management mitigate this weakness with possible compensating controls such as close supervision and monitoring by management and by the Board of Directors. Views of Responsible Officials and Planned Corrective Action-See Exhibit I.