Finding 626939 (2022-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-06-21
Audit: 52928
Organization: City of Bloomer (WI)

AI Summary

  • Core Issue: Limited staff prevents proper separation of duties, leading to a material weakness in internal controls over financial reporting.
  • Impacted Requirements: Internal controls require that no one person should execute, access, and record transactions to prevent errors or fraud.
  • Recommended Follow-Up: The City should assess staffing levels to improve segregation of duties and ensure compliance with internal control standards.

Finding Text

Finding: 2022-001 Limited Segregation of Duties Type of Finding: Material Weakness in Internal Control Over Financial Reporting Condition: The auditors noted during the audit that the available staff precludes a proper separation of duties to assure adequate internal control. Criteria: Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Cause: The condition is due to limited staff available. Effect: Lack of segregation of duties could result in a financial statement misstatement, caused by error or fraud that would not be detected or prevented by City staff. Recommendation: The City should continue to evaluate its staffing in order to segregate incompatible duties whenever possible. Repeat Finding: This audit finding was reported in the prior year. Views of Responsible Officials and Planned Corrective Actions: The City will continue to work to achieve segregation of duties whenever cost effective. The Administrator-Clerk-Treasurer is the official responsible for ensuring corrective action of the deficiency.

Categories

Internal Control / Segregation of Duties Material Weakness Reporting

Other Findings in this Audit

  • 50497 2022-001
    Material Weakness Repeat
  • 50498 2022-002
    Material Weakness Repeat
  • 50499 2022-003
    Material Weakness Repeat
  • 50500 2022-004
    Material Weakness
  • 50501 2022-005
    Material Weakness
  • 626940 2022-002
    Material Weakness Repeat
  • 626941 2022-003
    Material Weakness Repeat
  • 626942 2022-004
    Material Weakness
  • 626943 2022-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.760 Water and Waste Disposal Systems for Rural Communities $9.05M
21.027 Coronavirus State and Local Fiscal Recovery Funds $148,448