Finding 1181760 (2025-001)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2025
Accepted
2026-03-20
Audit: 393045
Organization: B-Y WATER DISTRICT (SD)

AI Summary

  • Answer: There is a material weakness in internal controls related to revenue management.
  • Trend: This issue indicates ongoing risks in compliance with financial regulations.
  • List: Follow up by implementing proper segregation of duties to strengthen controls.

Finding Text

A material weakness in internal controls was noted due to a lack of segregation of duties for revenues which affects compliance requirements.

Corrective Action Plan

A material weakness in internal controls was noted due to the lack of segregaton of duties for revenue. B-Y Water District's General Manager Terry Wootton is the contact person for the corrective action plan for this finding. Due to the population served by B-Y Water District and the limited resources available to compensate employees and the fiscal responsible nature, B-Y Water District can't justify hiring the additional staff that would be necessary to properly segregate duties. The General Manager, B-Y Water District Board of Directors and B-Y Water District Bookkeeper are aware of the issue. B-Y Water District has put in place policies and is actively working on additional policies that will put controls in place that will safeguard the District's revenue and minimize any future risk. This process will be an ongoing process that will include input from numerous agencies that will ensure B-Y Water District's financial controls are at a very secure level.

Categories

Internal Control / Segregation of Duties Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.760 WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES $3.03M