Finding Text
Lack of Segregation of Duties:
Criteria:
Management is responsible for establishing and maintaining effective internal control to ensure that transactions are authorized and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles.
Condition:
A majority of the Authority’s transactions are processed and recorded by a single office manager.
Cause:
Due to budget restraints, it has historically not been cost effective for the Authority to hire additional office staff to allow for an appropriate segregation of duties.
Effect:
The lack of segregation of duties creates a significant deficiency in the control environment which may not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis.
Recommendation:
Board members should increase their involvement in day-to-day activities of the Authority and consider hiring additional office staff.
Views of responsible officials and corrective action:
The Authority acknowledges this finding. The Board will discuss the possibility of utilizing additional board members or hiring additional staff to assist the office manager.