Finding Text
Finding: 2022-001 Limited Segregation of Duties Type of Finding: Material Weakness in Internal Control Over Financial Reporting Condition: The auditors noted during the audit that the available staff precludes a proper separation of duties to assure adequate internal control. Criteria: Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Cause: The condition is due to limited staff available. Effect: Lack of segregation of duties could result in a financial statement misstatement, caused by error or fraud that would not be detected or prevented by City staff. Recommendation: The City should continue to evaluate its staffing in order to segregate incompatible duties whenever possible. Repeat Finding: This audit finding was reported in the prior year. Views of Responsible Officials and Planned Corrective Actions: The City will continue to work to achieve segregation of duties whenever cost effective. The Administrator-Clerk-Treasurer is the official responsible for ensuring corrective action of the deficiency.