Finding 398260 (2023-002)

Finding 2023-002 Significant Deficiency Segregation of duties. Criteria An effective system of internal accounting control necessities an adequate segregation of duties so that no one individual handles a transaction from its inception to its completion. Condition One position within the Authority's staff had access to cash receipts, cash disbursements/purchasing, and cash reconciliations. Cause Due to the size of the Authority's staff, we found some critical duties are combined and assigned to the available employees. Effect The internal control system is more susceptible to errors and other irregularities, either intentional or unintentional, not being discovered. Recommendation Management should continue to review staff responsibilities and analyze where segregation of duties can be established and maintained. A final cross check of cash receipts, cash disbursements/purchasing, and cash reconciliations should be done by someone that does nto have access to any of the processes involved in generating the source document. Management's Response and Corrective Action Plan See attached response.