Finding Text
Segregation of Duties. Criteria: An important aspect of any good system of internal accounting control includes adequate
segregation of duties so that no one individual handles a transaction from its inception to its
completion.
Condition: Adequate segregation of duties is lacking in the current system of internal accounting
control. Cause: The administration of the Village of Elizabeth is not large enough to permit an adequate
segregation of duties in all respects for an effective system of internal accounting control.
Effect: The existence of this material weakness has the potential for misstatement of financial
statement amounts and those amounts may be material. The potential also exists for the
misappropriation of assets.
Recommendation: This situation dictates that the board of trustees remain involved in the financial
affairs of the Village by providing oversight and independent review functions.
Response: The Village board of trustees will continue to provide additional oversight by making the
budget committee a permanent standing committee that will meet quarterly to go over finances
presented to them by the clerk and treasurer. Additionally, the budget committee will continue to go
over line items of the budget comparison looking for incorrect entries.
Conclusion: Response accepted.