Finding Text
Criteria: Internal control that supports the City's ability to initiate, record, process and report financial data consistent with the assertions of management in the financial statements requires adequate segregation of accounting duties. Condition: The City does not have adequate segregation of accounting duties. Cause: There are a limited number of office employees. Effect or Potential Effect: The lack of adequate segregation of accounting duties could adversely affect the City's ability to initiate, record, process and report financial data consistent with the assertions of management in the financial statements. Questioned Cost: None. Context: During our audit, we noted the City does not maintain proper separation within the accounting function of the City to ensure proper segregation of accounting duties. Repeat of Prior-Year Finding: 2021-002 Recommendations: For entities of the City's size, it generally is not practical to obtain the internal control that supports the adequate segregation of duties. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the recommendation that it is not cost effective for the City to maintain proper segregation of duties.