Finding 621028 (2022-002)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-04-30
Audit: 39386
Organization: City of South Haven (MN)

AI Summary

  • Core Issue: The City lacks adequate segregation of accounting duties, which is essential for reliable financial reporting.
  • Impacted Requirements: This deficiency affects the City's ability to initiate, record, process, and report financial data accurately.
  • Recommended Follow-Up: Management acknowledges the issue but believes that achieving proper segregation of duties is not cost-effective given the limited number of employees.

Finding Text

"Criteria: Internal control that supports the City's ability to initiate, record, process and report financial data consistent with the assertions of management in the financial statements requires adequate segregation of accounting duties. Condition: The City does not have adequate segregation of accounting duties. Cause: There are a limited number of office employees. Effect or Potential Effect: The lack of adequate segregation of accounting duties could adversely affect the City's ability to initiate, record, process and report financial data consistent with the assertions of management in the financial statements. Questioned Cost: None. Context: During our audit, we noted the City does not maintain proper separation within the accounting function of the City to ensure proper segregation of accounting duties. Repeat of Prior-Year Finding: 2021-002 Recommendations: For entities of the City's size, it generally is not practical to obtain the internal control that supports the adequate segregation of duties. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the recommendation that it is not cost effective for the City to maintain proper segregation of duties."

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 44583 2022-001
    Significant Deficiency Repeat
  • 44584 2022-002
    Significant Deficiency Repeat
  • 44585 2022-001
    Significant Deficiency Repeat
  • 44586 2022-002
    Significant Deficiency Repeat
  • 621025 2022-001
    Significant Deficiency Repeat
  • 621026 2022-002
    Significant Deficiency Repeat
  • 621027 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.770 Water and Waste Disposal Loans and Grants (section 306c) $2.11M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $16,072