Finding 1172372 (2025-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-02-04
Audit: 385416
Organization: Village of Hanover (IL)

AI Summary

  • Core Issue: Key duties in internal control are not properly segregated among accounting staff.
  • Impacted Requirements: This lack of segregation increases the risk of errors and fraud.
  • Recommended Follow-Up: Explore alternative controls or processes to mitigate risks due to limited resources.

Finding Text

A fundamental element of internal control is the segregation of certain key duties and responsibilities, such as custody of assets, authorization or approval of transactions, recording or reporting transactions, and execution of transactions .Certain members of the accounting staff have duties incompatible with proper segregation of duties. The Village is a small municipality with limited resources that prevent full segregation of duties.

Corrective Action Plan

The board of trustees regularly reviews financial statements, bank reconciliations, and budget vs. actual information to help to mitigate the lack of ideal segregation of duties.

Categories

Internal Control / Segregation of Duties Reporting

Programs in Audit

ALN Program Name Expenditures
66.468 DRINKING WATER STATE REVOLVING FUND $890,024
66.458 CLEAN WATER STATE REVOLVING FUND $653,142
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $104,513