Finding Text
Criteria:
Generally, a system of internal control contemplates segregation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transactions.
Condition:
Due to the limited size of the Cooperative’s business staff, the Cooperative has limited segregation of duties.
Questioned Costs:
None.
Context:
The Cooperative has informed us that the small size of its business office staff precludes proper segregation of duties at this time.
Effect:
The Cooperative is unable to maintain segregation of incompatible duties.
Cause:
Limited number of staff in the business office.
Repeat Finding:
The finding was reported in the prior year as finding 2022-001.
Recommendation:
We recommend that the Cooperative continue to segregate incompatible duties as best it can within the limits of what the Cooperative considers to be cost beneficial.
Current Status:
Unresolved, the Cooperative still has a limited number of staff in the business office.
Action Taken:
The Cooperative reviews and makes improvements to its internal controls on an ongoing basis and attempts to maximize the segregation of duties in all areas within the limits of the staff available.
Views of Responsible Officials and Planned Corrective Actions:
The Cooperative agrees with this finding and will adhere to the corrective action plan on page 27 in this audit report.