Finding 401686 (2021-001)

Material Weakness Repeat Finding
Requirement
ABFN
Questioned Costs
-
Year
2022
Accepted
2024-06-24
Audit: 309637
Organization: Municipality of Gregory (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 Gregory Finance Officer, Trudy Waterman, with the Mayor, Al Cerny, are the contact persons responsible for the corrective action plan for this finding. Finding Number 2021-001 is due to the limited number of staff the City of Gregory can afford to have on the payroll budget. The Mayor, City Council Members, and Finance Administration employees are aware of the risk and have taken steps to reduce that risk. Our Assistant Finance Officer is solely in control of generating utility bills, the Finance Officer helps collect and oversee the collection of revenues through the current municipal software in the Receipts Management Module and Front Desk. The Finance Officer also conducts reconciliation on all accounts and would be required to report any discrepancies to the Mayor and Council. Our Finance Administration is required to run all revenue and expense reports monthly, our check signing procedures require two signatures, most generally the Mayor and one of the two employees in the Finance Administration. The Assistant Finance Officer and Finance Officer jointly conduct the payroll process and jointly fill out the claim couchers and the claims list is presented to the City Council at each meeting.

Categories

Internal Control / Segregation of Duties Material Weakness

Other Findings in this Audit

  • 401687 2021-001
    Material Weakness Repeat
  • 978128 2021-001
    Material Weakness Repeat
  • 978129 2021-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program $246,603
21.027 Coronavirus State and Local Fiscal Recovery Funds $111,051
10.351 Rural Business Development Grant $5,880
21.019 Coronavirus Relief Fund $2,756
39.003 Donation of Federal Surplus Personal Property $92