Finding 1153371 (2024-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-09-18
Audit: 366568
Organization: City of Virginia, Minnesota (MN)

AI Summary

  • Core Issue: The City’s finance office lacks proper segregation of duties, which is essential for effective internal controls.
  • Impacted Requirements: Inadequate internal control due to concentration of responsibilities among a few individuals.
  • Recommended Follow-Up: The City Council should reassign duties to enhance oversight and improve accounting controls.

Finding Text

2024-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the assigned duties of personnel within the City’s finance office, the segregation of accounting functions necessary to ensure adequate internal accounting control has not been met. Effect Because of the weakness in segregation of duties, the City has not provided adequate internal control. Cause This occurred because personnel duties were not reassigned when the structure of the finance office changed. Recommendations The City Council should reassign/segregate personnel duties in order to ensure adequate accounting control and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The City Administrator and Finance Director will attempt to monitor transactions and restructure the duties of office personnel to help ensure as much segregation of duties as possible with the City’s staffing limitations and funding constraints.

Corrective Action Plan

Finding Number: 2024-001 Finding Title: SEGREGATION OF DUTIES Name of Contact Person Responsible for Corrective Action Britt See-Benes, City Administrator and Sherry Erickson, Finance Director Corrective Action Planned The City Administrator and Finance Director will attempt to monitor transactions and restructure the duties of office personnel to help ensure as much segregation of duties as possible within the City’s staffing limitations and funding constraints. Anticipated Completion Date Ongoing.

Categories

Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
20.205 Highway Planning and Construction $1.18M
21.027 Coronavirus State and Local Fiscal Recovery Funds $438,681
14.218 Community Development Block Grants/entitlement Grants $137,500
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $7,951
20.600 State and Community Highway Safety $7,120
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $1,489