Finding 1226462 (2025-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-08-13
Audit: 409088
Organization: City of Marion (SC)

AI Summary

  • Core Issue: The City lacks complete segregation of duties due to a small staff, increasing the risk of undetected errors and asset misappropriation.
  • Impacted Requirements: Internal controls are insufficient, as one person can manage transactions from start to finish without oversight.
  • Recommended Follow-Up: Continue supervisory reviews of financial statements and budget reports, and segregate duties where it is cost-effective.

Finding Text

Due to a small staff size, the City does not have complete segregation of duties. The ideal internal control system would not allow one perosn to perform a transaction from beginning to end. An error in financial reporting may not be detected in a timely manner or the misappropriation of assets could be concealed. We recommend that the Council and management continue to use supervisory reviews such as monitoring financial statements and budget reports, and segregate duties where costs beneficial to do so. The City will continue to use supervisory reviews such as monitoring financial statements and budget reports, and where cost beneficial will segregate duties.

Corrective Action Plan

The City relies heavily on supervisory oversight. The City has in place many internal controls to help reduce risks of financial reporting objectives and provide safeguards for the City's assets. Some of the controls are a supervisor has to review and sign off on all bank statements and reconciliations, and any journal entries. All accounts payable invoices and reports are reviewed by at least two people.

Categories

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 1226453 2025-001
    Material Weakness Repeat
  • 1226454 2025-002
    Material Weakness Repeat
  • 1226455 2025-001
    Material Weakness Repeat
  • 1226456 2025-002
    Material Weakness Repeat
  • 1226457 2025-001
    Material Weakness Repeat
  • 1226458 2025-002
    Material Weakness Repeat
  • 1226459 2025-001
    Material Weakness Repeat
  • 1226460 2025-002
    Material Weakness Repeat
  • 1226461 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $2.02M
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $177,975
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $11,683
10.698 STATE & PRIVATE FORESTRY COOPERATIVE FIRE ASSISTANCE $5,000
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $500