Finding 3959 (2022-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-12-12
Audit: 6229
Organization: Municipality of Delmont (SD)

AI Summary

  • Answer: There is a significant issue with internal controls related to revenue management.
  • Trend: This weakness indicates a pattern of insufficient checks and balances in financial processes.
  • List: Immediate action is needed to implement proper segregation of duties to enhance control effectiveness.

Finding Text

A material weakness in internal controls was noted due to a lack of proper segregation of duties for revenues.

Corrective Action Plan

The City of Delmont Governing Board is the contact for the corrective action plan for this finding. Because of the size of the City of Delmont, the City cannot support the internal controls needed to properly segregate duties. The City Council Members and Finance Office employees are aware of the problem. We will be working on some different policies and controls that will help minimize the future risk. This will be an ongoing process that will include input from the State Auditor's Office, talking to other municipalities and utilizing the council members in some of the financial controls.

Categories

Internal Control / Segregation of Duties Material Weakness

Other Findings in this Audit

  • 3960 2022-002
    Material Weakness
  • 580401 2022-001
    Material Weakness Repeat
  • 580402 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
66.458 Capitalization Grants for Clean Water State Revolving Funds $814,811
10.760 Water and Waste Disposal Systems for Rural Communities $721,808
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $405,064
21.027 Coronavirus State and Local Fiscal Recovery Funds $19,841