Finding Text
Criteria: A fundamental concept of a system of internal controls is the segregation of incompatible duties. Condition: Due to the limited size of the Authority's business staff and related resources available, the Authority does not have adequate segregation of duties so that no one individual handles a transaction from its inception to its completion. Questioned Costs: None. Effect: The control deficiency could result in a misstatement to the financial statements that would not be prevented or detected in a timely manner. Cause: Limited number of staff and hours available preclude the Authority from ideal segregation of duties of separating the assignment of different staff people to authorize transactions, record transactions, and maintain custody of assets. Repeat Finding: This finding was reported in the prior year as finding 2024-001. Recommendation: Although it may not be economically feasible for the Authority to attain an ideal segregation of duties environment, the Authority can periodically observe and evaluate its current structure to make improvements when considered necessary. Views of Responsible Officials and Planned Corrective Actions: The Authority is in agreement with the finding. See separately issued Corrective Action Plan.