Finding 38109 (2022-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-03-26
Audit: 35348
Organization: Town of Evansville (WY)

AI Summary

  • Core Issue: There is a lack of segregation of duties in some departments, increasing the risk of errors and fraud.
  • Impacted Requirements: This situation compromises the organization's ability to protect assets and ensure compliance with policies and regulations.
  • Recommended Follow-Up: The Council should acknowledge the elevated risk and consider implementing additional oversight measures to mitigate potential issues.

Finding Text

2022-01 Lack of Segregation of duties Criteria: An effective internal control structure of an organization will include procedures and action to protect its assets, against theft and waste, ensure compliance with the organization?s policies, procedures and statutory requirements, evaluate the performance of personnel to promote effective operations, and to ensure accurate and reliable operating and accounting data. Condition: Due to the small size of some departments of the Town of Evansville, Wyoming, the possibility of adequate separation of duties over certain transactions cycles is limited. Effect: Separation of duties requires that someone other than the employee responsible for safe-guarding the asset must maintain the accounting records for that asset. When an organization separates duties of the employees, it minimizes the probability of an error or irregularity occurring and not being timely detected. Recommendation: While I recognize that it is impractical for the Town to achieve complete separation of duties over all transaction cycles within the Town, it is important that the Council be aware of the chance of errors and irregularities not being timely detected is elevated.

Corrective Action Plan

This letter is in response to finding 2022-001 Federal Awards 2022-001 Preparation of the Financial Statements. We have separated duties to the largest extent as possible and have implemented compensating controls to monitor the accounting activities. Chad Edwards Mayor Town of Evansville, Wyoming

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 38110 2022-001
    Significant Deficiency Repeat
  • 38111 2022-001
    Significant Deficiency Repeat
  • 38112 2022-001
    Significant Deficiency Repeat
  • 614551 2022-001
    Significant Deficiency Repeat
  • 614552 2022-001
    Significant Deficiency Repeat
  • 614553 2022-001
    Significant Deficiency Repeat
  • 614554 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $514,071
16.034 Coronavirus Emergency Supplemental Funding Program $237,742
14.225 Community Development Block Grants/special Purpose Grants/insular Areas $141,587
97.067 Homeland Security Grant Program $65,140