Finding Text
Condition: The District does not have an adequate segregation of duties between the accounting,
treasury, and custody functions. One individual should not have custody of particular assets and
be responsible for recording transactions related to those assets.
Criteria: Tennessee Code Annotated, Section 9-18-102(a) requires each local government in
Tennessee to establish and maintain internal controls.
Cause: The District is a small entity with limited resources, which has no full-time office staff.
Effect: The risk of errors and irregularities occurring and not being detected in a timely manner
increases when functions are not adequately segregated.