Finding Text
FINDING 2022-001 Lack of Segregation of Duties Condition: The Village has a lack of segregation of duties among certain procedures being performed by employees. Criteria: The Village is responsible for establishing and maintaining an internal control system over receipts and disbursements to prevent unintentional or intentional errors, misappropriation of assets, and fraud. Duties should be segregated to provide reasonable assurance that transactions are handled appropriately. Cause: This lack of segregation of duties is caused by the Village?s limited resources to hire additional employees in order to properly segregate duties. Effect: Lack of proper segregation of duties among the Village?s staff could result in intentional or unintentional errors or misappropriations of assets, in which errors or fraud could be material to the financial statements and may not be detected in a timely manner by employees in the normal course of performing their duties. Repeat Finding: This is a repeat finding of prior year; Finding 2021-001 Recommendation: The Village is responsible for establishing and maintaining an internal control system over receipts and disbursements to prevent unintentional or intentional errors, misappropriation of assets, and fraud. Duties should be segregated to provide reasonable assurance that transactions are handled appropriately. Auditors recommend that, since the hiring of additional staff is not feasible, the Village separate duties as much as economically feasible, and alternative controls should be implemented to compensate for lack of segregation of duties. The Village?s Governing Board should provide some of these controls. Views of Responsible Officials: These procedures have been implemented, and the Village Board intends to implement more in the future.