Finding Text
Criteria: Good internal control over financial reporting requires entities have proper segregation of duties in the accounting function so that no one person can authorize a transaction, record the transaction in account, and be responsible for the custody of the asset resulting from the transaction. Condition: Though management demonstrates the capability of running a governmental organization, we noted a lack of segregation of duties as one person could handle all phases of a transaction from beginning to end. Effect: Without proper segregation of duties, there is an increased risk the financial statements may be materially misstated. Repeat Finding: Yes Recommendation: We recommend the Authority weigh the cost benefit of hiring personnel with accounting function capabilities in order to properly segregate duties. Response: The Authority’s Board will consider the costs benefit of hiring additional personnel. Additionally, the Board takes an active interest in the finances of the Authority and provides additional oversight. Questioned Costs: No questioned costs were identified.