Finding 47184 (2022-002)

2022-002: U.S. Department of Environment Protection ? Assistance Listing # 66.460 Non-Point Source Implementation Grants Lack of Segregation of Duties ? Significant Deficiency Condition & Criteria: The condition reported as item 2022-001 above also applies to the Township?s internal control over compliance with the requirements of federal programs. Effect: This condition could result in instances of noncompliance with requirements not being detected or corrected on a timely basis. Cause: Although the Township has been able to institute an additional layer of controls over its federal program expenditures, the Township?s small size and limited staff does not allow for it to have the checks and balances over the reporting and cash management functions that would be present in an ideal set of controls. Recommendation: The division of duties that does exist among the office staff is considered a compensating control, as is the close involvement of the Board of Supervisors in the financial transaction and reporting process. We urge the Board to continue their close involvement in all financial aspects, including those related to the federal programs.