Finding 31412 (2022-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2023-02-20

Audit: 35901

Organization: McCormick Commission of Public Works (SC)

Auditor: McKinley Cooper & CO LLC

AI Summary

Core Issue: There's a significant deficiency in how accounting duties are assigned, allowing individuals access to both physical assets and accounting records.
Impacted Requirements: Proper segregation of duties is necessary to ensure transactions are managed correctly and to prevent mishandling.
Recommended Follow-Up: Implement duty segregation where possible and ensure ongoing oversight by the commissioners for better financial management.

Finding Text

SIGNIFICANT DEFICIENCY. 2022-001. CONDITION: THERE IS A LACK OF DEGREGATION OF ACCOUNTING DUTIES THAT ENABLES THE SAME INDIVIDUALS TO HAVE ACCESS TO BOTH PHYSICAL ASSETS AND THE RELATED ACCOUNTING RECORDS OR TO ALL PHASES OF A TRANSACTION. EFFECT: TRANSACTIONS COULD BE MISHANDLED. CRITERIA: DUTIES SHOULD BE SEGREGATED TO PROVIDE REASONABLE ASSURANCE THAT TRANSACTIONS ARE HANDLED APPROPRIATELY. CAUSE: THERE ARE A LIMITED NUMBER OF PERSONNEL FOR CERTAIN FUNCTIONS. IDENTIFICATION OF A REPORT FINDING: THIS IS NOT A REPEAT FINDING. RECOMMENDATION: DUTIES SHOULD BE SEGREGATED TO THE EXTENT POSSIBLE. THE COMMISSIONERS MUST REMAIN INVOLVED IN THE FINANCIAL AFFAIRS OF THE COMMISSION TO PROVIDE OVERSIGHT AND INDEPENDENT REVIEW FUNCTIONS. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: THE COMMISSION AGREES WITH THIS FINDING AND WILL ADHERE TO THE CORRECTIVE ACTION PLAN IN THIS REPORT.

Corrective Action Plan

SIFNIFICANT DEFICIENCY: 2022-001 SEGREGATION OF DUTIES: NAME OF CONTACT PERSON: CHERYL DANIELS, GENERAL MANAGER. CORRECTIVE ACTION: THE DUTIES WILL BE SEGREGATED AS MUCH AS POSSIBLE AND THE COMMISSIONERS WILL REMAIN INVOLVED IN THE FINANCIAL AFFAIRS OF THE COMMISSION TO PROVIDE OVERSIGHT AND INDEPENDENT REVIEW FUNCTIONS. PROPOSED COMPLETION DATE: MANAGEMENT WILL IMPLEMENT THE ABOVE ACTION IMMEDIATELY.

Other Findings in this Audit

607854 2022-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
10.760	Water and Waste Disposal Systems for Rural Communities	$12.67M