FAC Explorer

Finding 589179 (2022-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-02-22
Audit: 17708
Organization: Hot Springs County (WY)
Auditor: Carver Florek & James CPAS

AI Summary

  • Core Issue: The County lacks proper segregation of duties in its accounting processes due to a limited number of personnel.
  • Impacted Requirements: This deficiency increases the risk of fraud, errors, and noncompliance with federal program requirements.
  • Recommended Follow-Up: County Commissioners should implement oversight policies to mitigate risks associated with inadequate segregation of duties.

Finding Text

Criteria An effective internal control structure of an entity will include policies and procedures to: 1. Protect its assets against theft and waste. 2. Ensure compliance with the entity?s policies, procedures, and statutory requirements. 3. Evaluate the performance of personnel to promote efficient operations. 4. Ensure accurate and reliable operating and accounting data. Segregation of duties is a basic, key internal control and often difficult to achieve, especially in a small organization. The concept is that one individual should not be able to handle or dominate transactions for initiation to posting in the general ledger with access to assets and accounting records. Condition The County has a limited number of accounting personnel and accordingly a proper segregation of duties does not exist. Cause Due to the size of the County, as measured by the scope, volume and complexity of the entity?s activities and financial transactions, it is not practical to employ sufficient staff to maintain an adequate segregation of duties at all times. Effect or Potential Effect The potential effect is an increase in the risk of fraud and undetected errors in the processing of financial transactions and material noncompliance with requirements of federal programs. Recommendation We recognize that that is impractical for the entity to employ sufficient staff to achieve complete segregation of duties over all transactions at all times. However, we feel the County Commissioners should be aware of this deficiency in internal control. The County Commissioners should formulate and follow oversight policies and procedures to mitigate the risk of the lack of segregation of duties. Views of Responsible Officials and Planned Corrective Actions See the following page(s) for the County?s response to this finding.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 12727 2022-001
    Significant Deficiency Repeat
  • 12728 2022-002
    Significant Deficiency Repeat
  • 12729 2022-001
    Significant Deficiency Repeat
  • 12730 2022-002
    Significant Deficiency Repeat
  • 12731 2022-001
    Significant Deficiency Repeat
  • 12732 2022-002
    Significant Deficiency Repeat
  • 12733 2022-001
    Significant Deficiency Repeat
  • 12734 2022-002
    Significant Deficiency Repeat
  • 12735 2022-001
    Significant Deficiency Repeat
  • 12736 2022-002
    Significant Deficiency Repeat
  • 12737 2022-001
    Significant Deficiency Repeat
  • 12738 2022-002
    Significant Deficiency Repeat
  • 12739 2022-001
    Significant Deficiency Repeat
  • 12740 2022-002
    Significant Deficiency Repeat
  • 12741 2022-001
    Significant Deficiency Repeat
  • 12742 2022-002
    Significant Deficiency Repeat
  • 12743 2022-001
    Significant Deficiency Repeat
  • 12744 2022-002
    Significant Deficiency Repeat
  • 12745 2022-001
    Significant Deficiency Repeat
  • 12746 2022-002
    Significant Deficiency Repeat
  • 12747 2022-001
    Significant Deficiency Repeat
  • 12748 2022-002
    Significant Deficiency Repeat
  • 12749 2022-001
    Significant Deficiency Repeat
  • 12750 2022-002
    Significant Deficiency Repeat
  • 12751 2022-001
    Significant Deficiency Repeat
  • 12752 2022-002
    Significant Deficiency Repeat
  • 12753 2022-001
    Significant Deficiency Repeat
  • 12754 2022-002
    Significant Deficiency Repeat
  • 12755 2022-001
    Significant Deficiency Repeat
  • 12756 2022-002
    Significant Deficiency Repeat
  • 12757 2022-001
    Significant Deficiency Repeat
  • 12758 2022-002
    Significant Deficiency Repeat
  • 12759 2022-001
    Significant Deficiency Repeat
  • 12760 2022-002
    Significant Deficiency Repeat
  • 12761 2022-001
    Significant Deficiency Repeat
  • 12762 2022-002
    Significant Deficiency Repeat
  • 12763 2022-001
    Significant Deficiency Repeat
  • 12764 2022-002
    Significant Deficiency Repeat
  • 589169 2022-001
    Significant Deficiency Repeat
  • 589170 2022-002
    Significant Deficiency Repeat
  • 589171 2022-001
    Significant Deficiency Repeat
  • 589172 2022-002
    Significant Deficiency Repeat
  • 589173 2022-001
    Significant Deficiency Repeat
  • 589174 2022-002
    Significant Deficiency Repeat
  • 589175 2022-001
    Significant Deficiency Repeat
  • 589176 2022-002
    Significant Deficiency Repeat
  • 589177 2022-001
    Significant Deficiency Repeat
  • 589178 2022-002
    Significant Deficiency Repeat
  • 589180 2022-002
    Significant Deficiency Repeat
  • 589181 2022-001
    Significant Deficiency Repeat
  • 589182 2022-002
    Significant Deficiency Repeat
  • 589183 2022-001
    Significant Deficiency Repeat
  • 589184 2022-002
    Significant Deficiency Repeat
  • 589185 2022-001
    Significant Deficiency Repeat
  • 589186 2022-002
    Significant Deficiency Repeat
  • 589187 2022-001
    Significant Deficiency Repeat
  • 589188 2022-002
    Significant Deficiency Repeat
  • 589189 2022-001
    Significant Deficiency Repeat
  • 589190 2022-002
    Significant Deficiency Repeat
  • 589191 2022-001
    Significant Deficiency Repeat
  • 589192 2022-002
    Significant Deficiency Repeat
  • 589193 2022-001
    Significant Deficiency Repeat
  • 589194 2022-002
    Significant Deficiency Repeat
  • 589195 2022-001
    Significant Deficiency Repeat
  • 589196 2022-002
    Significant Deficiency Repeat
  • 589197 2022-001
    Significant Deficiency Repeat
  • 589198 2022-002
    Significant Deficiency Repeat
  • 589199 2022-001
    Significant Deficiency Repeat
  • 589200 2022-002
    Significant Deficiency Repeat
  • 589201 2022-001
    Significant Deficiency Repeat
  • 589202 2022-002
    Significant Deficiency Repeat
  • 589203 2022-001
    Significant Deficiency Repeat
  • 589204 2022-002
    Significant Deficiency Repeat
  • 589205 2022-001
    Significant Deficiency Repeat
  • 589206 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $428,587
97.067 Homeland Security Grant Program $87,606
16.575 Crime Victim Assistance $23,477
93.558 Temporary Assistance for Needy Families $19,562
21.019 Coronavirus Relief Fund $18,321
93.069 Public Health Emergency Preparedness $9,600
93.268 Immunization Cooperative Agreements $7,995
20.106 Airport Improvement Program $3,081
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $1,313
20.600 State and Community Highway Safety $1,236
20.616 National Priority Safety Programs $408