Finding Text
Item 2024 - 001: Segregation of Duties. Condition and Context: During our consideration of internal control, we noted that the
assignment of responsibilities to the Town’s General Fund accounting staff did not provide for
an optimum segregation of duties.
Criteria: Proper segregation of duties between those responsible for the custody of assets,
authorization of transactions, and recording of accounting transactions serves as a basic internal
control to prevent error and fraud.
Cause: During the year ended June 30, 2024, one person performed two or more of these
functions in the normal course of performing their duties.
Effect: Errors, omissions, and irregularities may be present and go undetected by management.
Recommendation: We recommend the Selectboard remain involved in the financial affairs of the
Town to provide oversight and independent review functions. A segregation of duties concern
will exist as long as the size of the Town's financial staff and the assignment of duties remains
the same.
Management’s Response: The Selectboard has been made aware of the deficiency in
segregation of duties and is willing to accept the risk associated with the current delegation of
duties. The Treasurer reconciles the bank statements and prepares a financial report for review
by the Selectboard at regular monthly meetings.