Finding 559020 (2024-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2024

Accepted

2025-05-01

Audit: 355278

Organization: Southeastern Indiana Rural Electric Membership Corporation (IN)

Auditor: Lwg CPAS & Advisors

AI Summary

Answer: There is a lack of proper duty segregation among employees in key accounting tasks.
Trend: This issue has persisted throughout the year ending December 31, 2024, indicating a potential risk in internal controls.
List: Review and implement stronger controls to ensure duties are appropriately segregated to mitigate risks.

Finding Text

More than one employee has the ability to complete multiple parts of tasks. For the year ended December 31, 2024, Southeastern Indiana REMC has failed to appropriately segregate duties in certain accounting areas consistent with control objectives.

Corrective Action Plan

Management is aware of the audit finding regarding a lack of segregation of duties. It would not be cost effective to hire additional employees to properly segregate responsibilities at this time. Management performs additional procedures to mitigate this risk. We do not have an anticipated time frame for hiring additional employees to mitigate this risk.

Other Findings in this Audit

559021 2024-002

-
1135462 2024-001

Significant Deficiency
1135463 2024-002

-

Programs in Audit

ALN	Program Name	Expenditures
21.029	Coronavirus Capital Projects Fund	$7.37M