Finding Text
2023-005 General - Segregation of Duties A limited number of personnel are involved in accounting functions in which they are responsible for all related transactions (i.e. the same person recording transactions, preparing checks, recording cash disbursements, mailing checks and reconciling bank accounts, etc.). Effect: A lack of segregation of duties results in a weakness within the Borough's internal control system. Cause: The Borough has only a limited number of employees within the business office to assign duties. Additionally, various employees' capabilities restrict the Borough's options, in addition to weighing the additional costs of employing new personnel against the expected benefits to be derived. Population and Items Tested: N/A; Finding is based upon the understanding and review of the internal control system. Auditor's Recommendation: A greater segregation of duties can be achieved by the implementation of additional procedures that utilize current and new personnel. However, in evaluating this need, the Borough must weigh the cost of employing additional personnel against the expected benefits to be derived. The Borough's planned corrective action is in its Corrective Action Plan at the end of this report.