FAC Explorer

Finding 395925 (2023-002)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-05-06
Audit: 305578
Organization: Nance County Nebraska (NE)
Auditor: Romans Wiemer & Associates Cpa's PC

AI Summary

  • Core Issue: Lack of adequate personnel leads to insufficient segregation of duties in transaction handling.
  • Impacted Requirements: Internal controls must ensure that authorization, recording, and custody of assets are managed by different employees.
  • Recommended Follow-Up: Explore cost-effective ways to segregate duties to reduce risks of errors and irregularities.

Finding Text

MATERIAL WEAKNESS 2023-002 Internal Control Structure Design Program: Covid-19 Coronavirus State and Local Recovery Funds Assistance Listing #21.027 Condition: Adequate personnel are not available to assign responsibilities in such a way that different employees handle different parts of the same transaction. Cause: County has limited number of personnel. Criteria: Internal controls should be in place that provides reasonable assurance that authorization or approval of transactions, recording of transactions, and custody of assets are segregated activities. Effect: Due to the absence of segregation of duties, the level of risk that errors or irregularities, material in relation to the financial statements, may occur and not be detected within a timely period by the employees, in the normal course of performing their assigned functions, has not been reduced to a relatively low level. Recommendation: While considering the cost of any benefits derived, activities should be segregated and handled by different employees. Questioned Costs: $0.00 Grantee Response/Corrective Action Plan: The cost of implementing a complete set of controls far outweighs the benefits derived by such. It is not financially feasible to have a complete set of controls.

Corrective Action Plan

March 28, 2024 Nance County, Nebraska, respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Romans, Wiemer & Associates, Certified Public Accountants, P.C., 1910 N Lincoln Ave, York, NE 68467 Audit Period: July 1, 2022 through June 30, 2023 The findings from the March 28, 2024 schedule of findings and questioned cost are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS 2023-001 Internal Control Structure Design Recommendation: While considering the cost of any benefits derived, activities should be segregated and handled by different employees. Action Taken: The cost of implementing a complete set of controls far outweighs the benefits derived by such. It is not financially feasible to have a complete set of controls. FINDINGS – FEDERAL AWARD PROGRAM AUDIT U.S. Department of the Treasury 2023-002 Internal Control Structure Design Recommendation: While considering the cost of any benefits derived, activities should be segregated and handled by different employees. Action Taken: The cost of implementing a complete set of controls far outweighs the benefits derived by such. It is not financially feasible to have a complete set of controls. If the U.S. Department of the Treasury has questions regarding this plan, please call Adrian Chlopek at (308) 536-2331.

Categories

Internal Control / Segregation of Duties Material Weakness

Other Findings in this Audit

  • 972367 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $682,633
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $304,017