Finding 628684 (2022-001)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2022-10-31
Audit: 49087
Organization: Village of Catlin (IL)

AI Summary

  • Core Issue: The Village lacks proper segregation of duties, increasing the risk of errors and fraud.
  • Impacted Requirements: Internal controls over receipts and disbursements must be established to ensure transactions are handled appropriately.
  • Recommended Follow-Up: Implement alternative controls and separate duties as much as possible within current staffing limitations.

Finding Text

FINDING 2022-001 Lack of Segregation of Duties Condition: The Village has a lack of segregation of duties among certain procedures being performed by employees. Criteria: The Village is responsible for establishing and maintaining an internal control system over receipts and disbursements to prevent unintentional or intentional errors, misappropriation of assets, and fraud. Duties should be segregated to provide reasonable assurance that transactions are handled appropriately. Cause: This lack of segregation of duties is caused by the Village?s limited resources to hire additional employees in order to properly segregate duties. Effect: Lack of proper segregation of duties among the Village?s staff could result in intentional or unintentional errors or misappropriations of assets, in which errors or fraud could be material to the financial statements and may not be detected in a timely manner by employees in the normal course of performing their duties. Repeat Finding: This is a repeat finding of prior year; Finding 2021-001 Recommendation: The Village is responsible for establishing and maintaining an internal control system over receipts and disbursements to prevent unintentional or intentional errors, misappropriation of assets, and fraud. Duties should be segregated to provide reasonable assurance that transactions are handled appropriately. Auditors recommend that, since the hiring of additional staff is not feasible, the Village separate duties as much as economically feasible, and alternative controls should be implemented to compensate for lack of segregation of duties. The Village?s Governing Board should provide some of these controls. Views of Responsible Officials: These procedures have been implemented, and the Village Board intends to implement more in the future.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 52239 2022-001
    Significant Deficiency Repeat
  • 52240 2022-002
    Significant Deficiency Repeat
  • 52241 2022-003
    Significant Deficiency
  • 52242 2022-001
    Significant Deficiency Repeat
  • 52243 2022-002
    Significant Deficiency Repeat
  • 52244 2022-003
    Significant Deficiency
  • 628681 2022-001
    Significant Deficiency Repeat
  • 628682 2022-002
    Significant Deficiency Repeat
  • 628683 2022-003
    Significant Deficiency
  • 628685 2022-002
    Significant Deficiency Repeat
  • 628686 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.760 Water and Waste Disposal Systems for Rural Communities $895,105