Finding Text
2022-001 - SEGREGATION OF DUTIES - CRITERIA - INTERNAL CONTROLS SHOULD BE IN PLACE TO ENSURE PROPER SEGREGATION OF DUTIES. CONDITION - DUE TO THE SIZE OF THE SERVICE UNIT, THERE IS LIMITED SEGREGATION OF DUTIES OVER ACCOUNTING FUNCTIONS AS THE ENTITY DOES NOT HAVE ADEQUATE PERSONNEL TO ASSIGN RESPONSIBILITIES IN SUCH A WAY THAT DIFFERENT EMPLOYEES HANDLE DIFFERENT PORTIONS OF A TRANSACTION OR TRANSACTION CYCLE. CONTEXT - WE OBSERVED THROUGH OUR AUDIT PROCEDURES THAT CERTAIN DUTIES WERE NOT SEGREGATED BETWEEN DIFFERENT PERSONNEL. CAUSE - THE SERVICE UNIT HAS A LIMITED NUMBER OF PERSONNEL INVOLVED IN THE ACCOUNTING FUNCTIONS. QUESTIONED COSTS - NONE. POTENTIAL EFFECT - INADEQUATE SEGREGATION OF DUTIES COULD LEAD TO THE MISAPPROPRIATION OF ASSETS OR IMPROPER REPORTING. RECOMMENDATIONS - WE RECOMMEND THAT THE SERVICE UNIT CONTINUE TO MONITOR AND EVALUATE ITS INTERNAL CONTROLS WITH THE USE OF LIMITED PERSONNEL AND TO PROVIDE AS MUCH SEGREGATION OF DUTIES AS DETERMINED TO BE FEASIBLE WITHIN ITS OPERATIONS. SERVICE UNIT'S RESPONSE - THE SERVICE UNIT, WITHIN THE CONSTRAINTS OF EXISTING TIME AND COST CONSIDERATIONS, WILL CONTINUE TO REVIEW THE SITUATION AND MAKE IMPROVEMENTS IF THERE ARE AREAS IN WHICH FURTHER SEGREGATION OF ACCOUNTING FUNCTIONS IS BOTH WARRANTED AND FEASIBLE.