Finding 1784 (2022-001)

Material Weakness Repeat Finding
Requirement
ABI
Questioned Costs
-
Year
2022
Accepted
2023-11-14
Audit: 3076
Organization: Municipality of Lennox (SD)

AI Summary

  • Answer: There is a material weakness in internal controls related to revenue management.
  • Trend: This issue impacts compliance with the Coronavirus State and Local Fiscal Recovery Funds requirements.
  • List: Follow up by implementing proper segregation of duties to strengthen internal controls.

Finding Text

A material weakness in internal controls was noted due to a lack of proper segregation of duties for revenues. This affects the compliance requirements for the Coronavirus State and Local Fiscal Recovery Funds, ALN No. 21.027.

Corrective Action Plan

The City of Lennox's Mayor, Stacy DuChene, is the contact person responsible for the corrective action plan for this finding. Because of the size of the City of Lennox, the municipality can't support hiring additional staff that would be sufficient to support the internal controls needed to properly segregate duties. The Mayor, City Council Members and Finance employees are aware of the problem. We will continue to work on different policies and controls that will help minimize future risk. This is an ongoing process that will include input from the Legislative Auditors Office, discussion with other municipalities and utilizing the City Administrator, Mayor, and Council in some of the financial controls.

Categories

Internal Control / Segregation of Duties Material Weakness

Other Findings in this Audit

  • 578226 2022-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.10M
66.468 Capitalization Grants for Drinking Water State Revolving Funds $142,750
20.600 State and Community Highway Safety $2,895
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $2,565