Finding 1161442 (2023-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-10-27
Audit: 371314
Organization: Collegeville Borough (PA)

AI Summary

  • Answer: There is insufficient segregation of duties in financial reporting, increasing the risk of errors.
  • Trend: This issue arises from limited staff size, leading to inadequate controls over transaction recording.
  • List: Management plans to implement independent reviews of financial records to improve segregation of duties.

Finding Text

Criteria and Condition: There is a lack of segregation of duties over financial reporting. Context: There is not a sufficient control environment over recording transactions and over detective controls. Cause: Due to the size of staff, there is a lack of segregation of duties. Potential Effect: Errors could occur in financial reporting. Recommendation: Someone independent of the bookkeeping function should review financial records to establish a segregation of duties. Views of Responsible Officials and Planned Corrective Actions: Management understands the importance of segregation of duties. Borough of Collegeville will ensure work on establishing segregation going forward.

Corrective Action Plan

Action Taken: The Borough will have someone independent of the bookkeeping process begin to review completed bank reconciliations. Anticipated Completion: During 2024.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 1161441 2023-001
    Material Weakness Repeat
  • 1161443 2023-002
    Material Weakness Repeat
  • 1161444 2023-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $4.77M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $543,271