Finding Text
Segregation of Duties Cause: Management is responsible for the design, installation and maintenance of an appropriate system of internal control. Proper segregation of duties is an important aspect of any control system.Criteria: Segregation of duties is an aspect of internal control intended to prevent or decrease opportunities of intentional or unintentional errors and fraud. Duties and responsibilities are properly segregated if no single individual either has control over all phases of a transaction or has the ability to both make and conceal an error, whether such error is intentional or unintentional.
Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties.Cause: The lack of segregation of duties is due to the limited number of employees and the key role in which the Clerk/Treasurer position serves in maintaining the Village’s general ledger.Recommendation: We recommend the Board of Trustees and the Clerk/Treasurer continue to monitor the transactions and the financial records of the Village. We also encourage the Village to continue to identify cost effective opportunities to improve the design of the internal control structure.