Finding Text
2022-001 Significant Deficiency ? Segregation of Duties Condition: Responsibility for approving, executing, and recording transactions and custody of the resulting asset arising from the transaction should be assigned to different individuals.Criteria: Internal control should be implemented to the degree possible to assign to different individuals the responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction. Cause: Responsibilities of approval, execution, recording, and custody are not distributed among the office staff to the best degree possible. Effect: Because of the failure to segregate duties, internal control structure elements do not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by management in the normal course of performing assigned functions. Recommendation: Responsibilities of approval, execution, recording and custody be distributed among individuals to the degree possible. We recommend that management and the Board of Directors should remain involved in the financial affairs of the Authority to provide oversight and independent review functions and to continue exercising due diligence and professional skepticism in relation to the Authority?s financial operations. Views of Responsible Officials and Planned Corrective Actions: We will continue segregating duties among the Authority Manager, Board, and Accounting Manager. An individual other than the Accounting Manager will review cancelled checks to ensure payment amount and payee agreed with that had been approved by the board.