Finding Text
Lack of segregation of duties - Significant Deficiency 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. No one individual should have more than one duty related to approval, custody of assets, record keeping, and reconciliation functions. Condition: The City does not have enough staff to adequately separate duties over some financial transactions. Context: The lack of segregation of duties exits within the City as a whole over some of its accounting and reporting functions. This is a common circumstance in governments of similar size. Cause: LImited number of staff available to appropriately divide duties. Effect: Errors or misappropriations could occur and go undetected for a period of time. Questioned Costs: Not applicable Recommendation: The City be cognizant of the situation and provide appropriate oversight as deemed necesary. Views of Responsible Officials and Corrective Actions: The City agrees with the recommendations and continues to provide oversight as needed.