Finding Text
#2022-003 Segregation of Duties United States Department of Agriculture Water and Waste Disposal Systems for Rural Communities AL #10.760 United States Environmental Protection Agency Capitalization Grants for Clean Water State Revolving Funds AL #66.458 Criteria: Internal control should be implemented to the degree possible to assign to different individuals the responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction. Condition: Responsibility for approving, executing and recording transactions and custody of the resulting asset arising from the transaction should be assigned to different individuals. Cause: Responsibilities of approval, execution, recording and custody are not distributed among the office staff to the best degree possible. Effect: Because of the failure to segregate duties, internal control structure elements do not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by management in the normal course of performing assigned functions. Recommendation: Responsibilities of approval, execution, recording and custody be distributed among individuals to the degree possible. We recommend that management and the Board of Directors should remain involved in the financial affairs of the District to provide oversight and independent review functions and to continue exercising due diligence and professional skepticism in relation to the District's financial operations. Views of Responsible Officials and Planned Corrective Action: To the extent possible, the District has segregated its duties. Any further segregation of duties would not be economically feasible. Status: This condition was reported in the prior year's audit as finding #2021-003. Total Questioned Costs $ -0-