Finding 559864 (2024-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2024

Accepted

2025-05-08

Audit: 355800

Organization: South Central Indiana Rural Electric Membership Corporation (IN)

Auditor: Lwg CPAS & Advisors

AI Summary

Answer: There is a lack of proper segregation of duties in accounting tasks at South Central Indiana REMC.
Trend: This issue has persisted throughout the year ending December 31, 2024, indicating ongoing control weaknesses.
List: Recommend reviewing and restructuring roles to ensure duties are appropriately separated to enhance internal controls.

Finding Text

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

Corrective Action Plan

Regarding finding number 2024-001; Management is aware that there is a lack of segregation of duties. It would not be cost effective to hire additional employees to properly segregate duties 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. The responsible contact person regarding this significant deficiency is Charity Coffman, Vice President of Finance.

Other Findings in this Audit

1136306 2024-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
97.036	Disaster Grants - Public Assistance (presidentially Declared Disasters)	$1.84M