Finding 9274 (2022-001)

Material Weakness
Requirement
ABFIJMN
Questioned Costs
-
Year
2022
Accepted
2024-01-22
Audit: 12667
Organization: Borough of Lanesboro (PA)

AI Summary

  • Core Issue: The Borough's accounting department lacks adequate segregation of duties due to a limited number of employees.
  • Impacted Requirements: There is a need for sufficient personnel to ensure proper segregation of duties in financial operations.
  • Recommended Follow-Up: The Borough should monitor its accounting functions and evaluate the necessity of hiring additional staff as needed.

Finding Text

Segregation of Duties Condition: We noted that there is a lack of segregation of duties in the Borough’s accounting department due to its limited number of employees. Criteria: The Borough should have an adequate number of personnel necessary to facilitate a complete segregation of duties. Cause: The Borough does not have the resources necessary to employ additional personnel. Effect: The Borough does not have an adequate number of personnel necessary to facilitate a complete segregation of duties. Recommendations: The employment of additional personnel necessary to facilitate a complete segregation of duties may not be justified from a cost/benefit standpoint, therefore, we recommend that the Borough remain aware of this limitation and continually monitor the accounting function in order to mitigate this limitation. Response: The Borough currently employs a Secretary/Treasurer to run the day-to-day operations. The Borough will continue to evaluate the need to employ additional personnel.

Corrective Action Plan

The Borough will remain aware of the limitations and continually monitor the accounting function.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 9275 2022-002
    Significant Deficiency
  • 585716 2022-001
    Material Weakness
  • 585717 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.205 Highway Planning and Construction $1.40M