Finding Text
2022-001 Lack of segregation of duties - Significant Deficiency Condition: Lack of segregation of duties over financial processes. Criteria: For an effective control system, division of accounting duties should exist to prevent errors or misappropriations from going undetected in the course of employees performing their assigned duties. Context: The lack of segregation of duties exists within the City as a whole over all of its accounting and reporting functions. This is a common circumstance in governments of similar size. Effect: Errors or misappropriations could occur and go undetected for a period of time. Questioned Costs: Not applicable Cause: Limited number of staff available to appropriately divide duties. Recommendation: The City's council members need to be cognizant of the issue and provide appropriate oversight. Such oversight includes careful review of bank activity as well as general ledger and journal entries. The council members should also periodically perform on site inspections of assets and financial records. Views of Responsible Officials and Corrective Actions: The City agrees with the recommendations and continues to provide oversight as needed.