Finding 479221 (2023-002)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-07-24
Audit: 315783
Organization: City of St. James (MN)

AI Summary

  • Core Issue: There is insufficient segregation of duties due to a limited number of employees, which compromises control objectives.
  • Impacted Requirements: Staff should not control more than two of the four key duties: authorization, custody, record keeping, and reconciliation.
  • Recommended Follow-Up: The City should regularly assess staff responsibilities to identify and mitigate any unacceptable risks.

Finding Text

Condition: There is an absence of appropriate segregation of duties consistent with appropriate control objectives due to a limited number of employees. Criteria There are four general categories of duties: authorization, custody, record keeping, and reconciliation. No one person should have control over more than two of these four responsibilities. Cause: The City has assigned duties to staff based on a cost-benefit relationship to the City and the practicality of the level of staffing the City maintains. Effect: The lack of adequate segregation of duties could adversely affect the City’s ability to initiate, record, process and report financial data consistent with the assertions of management in the financial statements. Recommendation: The City should continue to monitor and evaluate the job responsibilities assigned to staff to determine whether there is an unacceptable risk.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 479218 2023-001
    Material Weakness Repeat
  • 479219 2023-002
    Significant Deficiency Repeat
  • 479220 2023-001
    Material Weakness Repeat
  • 479222 2023-001
    Material Weakness Repeat
  • 479223 2023-002
    Significant Deficiency Repeat
  • 479224 2023-001
    Material Weakness Repeat
  • 479225 2023-002
    Significant Deficiency Repeat
  • 479226 2023-001
    Material Weakness Repeat
  • 479227 2023-002
    Significant Deficiency Repeat
  • 479228 2023-001
    Material Weakness Repeat
  • 479229 2023-002
    Significant Deficiency Repeat
  • 1055660 2023-001
    Material Weakness Repeat
  • 1055661 2023-002
    Significant Deficiency Repeat
  • 1055662 2023-001
    Material Weakness Repeat
  • 1055663 2023-002
    Significant Deficiency Repeat
  • 1055664 2023-001
    Material Weakness Repeat
  • 1055665 2023-002
    Significant Deficiency Repeat
  • 1055666 2023-001
    Material Weakness Repeat
  • 1055667 2023-002
    Significant Deficiency Repeat
  • 1055668 2023-001
    Material Weakness Repeat
  • 1055669 2023-002
    Significant Deficiency Repeat
  • 1055670 2023-001
    Material Weakness Repeat
  • 1055671 2023-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program $1.56M
16.710 Public Safety Partnership and Community Policing Grants $154,710
21.027 Coronavirus State and Local Fiscal Recovery Funds $126,219
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $8,872
12.401 National Guard Military Operations and Maintenance (o&m) Projects $5,265
93.778 Medical Assistance Program $4,474