Finding 612668 (2022-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-05-11

AI Summary

  • Core Issue: Tri-County Electric Cooperative has not properly segregated accounting duties, increasing the risk of management overriding controls and undetected errors.
  • Impacted Requirements: The lack of duty segregation violates control objectives necessary for accurate financial reporting.
  • Recommended Follow-Up: Maintain current staffing levels but implement additional mitigating controls to reduce risks associated with the existing structure.

Finding Text

Criteria ? Duties within the accounting department should be allocated to assist in the prevention of management override of controls and provide checks to procedure to detect misstatements. Condition & Context ? More than one employee has the ability to complete multiple parts of tasks. For the year ended December 31, 2022, Tri-County Electric Cooperative, Inc. has failed to appropriately segregate duties in certain accounting areas consistent with control objectives. Cause - Tri-County Electric Cooperative, Inc. does not have resources available to have a fully staffed accounting department to properly segregate duties. Effect ? Because there is no other employees with which to share duties the likelihood that controls could be overridden or material errors go undetected is increased. Recommendation ? Due to the size of the organization and the presence of some mitigating controls, no recommendation to increase the size of the accounting department was made.

Categories

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Other Findings in this Audit

  • 36226 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $15.55M