Finding 1216434 (2024-002)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2024

Accepted

2026-06-03

Audit: 402946

Organization: Consolidated Public Water Supply District No 1 of Clark County Mo (MO)

Auditor: HARDEN CUMMINS MOSS & MILLER LLC

AI Summary

Core Issue: The current staffing and structure lead to insufficient segregation of duties in financial processes.
Impacted Requirements: Inadequate checks and balances may increase the risk of errors or fraud in handling invoices and payments.
Recommended Follow-Up: Review staffing levels and consider restructuring roles to ensure proper segregation of duties.

Finding Text

District clerk is responsible for receiving invoices and enters most receivable payments, reconciles accounts receivables and bank account statements. She also enters all journal entries and prepares all payments for signature, which are required to have 2 signatures. Although a full time office staff person was hired to assist with office and accounting duties, the auditee's current staffing levels and organizational structure contribute to the lack of adequate segregation of duties

Corrective Action Plan

The Board and management are aware of the inadequate separation of accounting duties when reviewing the monthly operations and financial results of the District. As an ongoing mitigating control, at the board meetings management and the board members review the monthly check register of disbursements, interim financial reports, summary of cash and certificates of deposits held, and contract pay applications and construction project status as presented by the project engineer for review and approval by the Board.

Other Findings in this Audit

1216433 2024-001

Material Weakness Repeat
1216435 2024-003

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
66.468	DRINKING WATER STATE REVOLVING FUND	$4.06M
10.760	WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES	$566,699