Finding 517162 (2023-003)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-12-30
Audit: 335122
Organization: County of Caldwell (TX)

AI Summary

  • Core Issue: Employees in the Auditor's Office have excessive permissions that allow them to create vendors and set up new employees.
  • Impacted Requirements: This violates the principle of proper segregation of duties, increasing the risk of misappropriation and inaccurate financial reporting.
  • Recommended Follow-Up: The County should work with IT to revoke unnecessary permissions and restore appropriate controls between the Treasurer’s Office and the Auditor’s Office.

Finding Text

Criteria –The Auditor’s Office should not be able to create new vendors, and set up new employees Condition – Multiple employees at the auditor’s Office can change their permissions in the software that would allow them to set up or change vendor information, create and then approve vendor payments, set up new employees, change employees direct deposit information and approve payroll. Effect – Misappropriation could occur as well as inaccurate information provided in the financial statements. Cause – The accounting system has been set up where multiple employees in the Auditor’s Office have permissions that they should not. Recommendation – The County should contact IT to relinquish certain permissions from employees to ensure reestablish proper segregation of duties between the Treasurer’s Office and the Auditors.

Corrective Action Plan

The County Auditor will contact IT to relinquish certain permissions from employees to ensure reestablish proper segregation of duties between the Treasurer’s Office and the Auditors.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 517160 2023-001
    Material Weakness Repeat
  • 517161 2023-002
    Material Weakness Repeat
  • 517163 2023-004
    Significant Deficiency Repeat
  • 1093602 2023-001
    Material Weakness Repeat
  • 1093603 2023-002
    Material Weakness Repeat
  • 1093604 2023-003
    Material Weakness
  • 1093605 2023-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.39M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $394,165
16.593 Residential Substance Abuse Treatment for State Prisoners $34,550
90.404 Hava Election Security Grants $16,823
16.606 State Criminal Alien Assistance Program $6,666