Finding Text
Lack of segregation of duties - significant deficiency Criteria - For an effetive control system, division of accounting duties should exist to prevent errors or misappropriations from going undetected in the course of employees performng their assigned duties. No one individual should have more than one duty related to approval, custody of assets, record keeping, and reconciliation functions. Condition - The City does not have enough staff to adequately separate duties in all financial transactions. Context - The lack of segreation of duties exists within the City as a whole over all of its accounting and reporting functions. This is a common circumstance in governments of similar size. Cause - Limited number of staff available to appropriately divide duties. Effect - Errors or misapporpirations could occur and go undetected for a period of time. Questioned costs - Not applicable Recommendation - The City's council members need to be cognizant of the issue and provide appropriate oversight. Such oversight includes careful review of the bank activity as well as general ledger and journal entries. The council members should also periodically perform on site inspections of assets and financial records. View of Responsible Officials and Corrective Actions - The City agrees with the recommendations and continues to provide oversight as needed.