Finding 555237 (2023-001)

Material Weakness Repeat Finding
Requirement
ABI
Questioned Costs
-
Year
2023
Accepted
2025-04-16
Audit: 353866
Organization: Municipality of Lennox (SD)

AI Summary

  • Answer: There is a material weakness in internal controls related to revenue management.
  • Trend: This issue impacts compliance with the Coronavirus State and Local Fiscal Recovery Funds requirements.
  • List: Follow up by implementing proper segregation of duties to strengthen internal controls.

Finding Text

A material weakness in internal controls was noted due to a lack of proper segregation of duties for revenues. This affects the compliance requirements for the Coronavirus State and Local Fiscal Recovery Funds, ALN No. 21.027.

Corrective Action Plan

A material weakness in internal controls was noted due to a lack of proper segregation of duties for revenues. This affects the compliance requirement for Coronavirus State and Local Fiscal Recovery Funds, ALN No. 21.027. Corrective Action: The City of Lennox's Mayor, Danny Fergen, is the contact person responsible for the corrective action plan of this finding. Because of the size of the City of Lennox, the municipality cannot support hiring additional staff that would be sufficient to support the internal controles neceessary to properly segregate duties. The Mayor, City Council, and Finance employees are aware of this challenge, and have put in place controls that minimize risk.

Categories

Internal Control / Segregation of Duties Material Weakness

Other Findings in this Audit

  • 1131679 2023-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $5.05M
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $30,876
20.600 State and Community Highway Safety $10,711
20.616 National Priority Safety Programs $1,397