Finding Text
Criteria or Specific Requirement – Segregation of duties is an essential element of the internal control structure.
Condition – The District has internal control weaknesses with respect to segregation of duties over cash receipts and disbursements.
Context – As a small rural hospital, the District has limited personnel resulting in limitations on their ability to segregate duties.
Cause – Due to limited personnel, the District has been unable to achieve adequate segregation of duties.
Effect or Potential Effect – The lack of adequate segregation of duties causes the District to be more susceptible to misappropriation of assets.
Recommendation – We recommend that the District implement procedures to mitigate its segregation of duty weaknesses as much as possible including review processes by the Chief Executive Officer and/or Chief Financial Officer.
Views of Responsible Officials and Planned Corrective Actions – Management agrees with the finding and will consider controls such as review processes that will mitigate its segregation of duty weaknesses.