Finding Text
United States Environmental Protection Agency
Passed through Georgia Department of Natural Resources,
Environmental Protection Division
Water Pollution Control State, Interstate, and Tribal Program Support
Federal Assistance Listing Number: 66.419
2023-01: Segregation of Duties
Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately.
Condition: Key duties and functions are not segregated among Organization personnel. This is especially a concern in the cash management, account receivable, accounts payable, and payroll functions.
Effect: Transaction could be mishandled, due to errors or fraud, that could lead to loss of assets or the reporting of misleading financial information.
Cause: There are a limited number of personnel for certain functions and lack of board oversight.
Identification of a repeat finding: No.
Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible.
Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 27 in this audit report.