Finding 971067 (2022-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2024-04-25
Audit: 304528
Organization: Village of Elizabeth (IL)

AI Summary

  • Core Issue: The current system lacks adequate segregation of duties, increasing the risk of errors and fraud.
  • Impacted Requirements: This weakness could lead to material misstatements in financial statements and potential asset misappropriation.
  • Recommended Follow-Up: The board of trustees should enhance oversight by maintaining a permanent budget committee to review finances quarterly.

Finding Text

Segregation of Duties. Criteria: An important aspect of any good system of internal accounting control includes adequate segregation of duties so that no one individual handles a transaction from its inception to its completion. Condition: Adequate segregation of duties is lacking in the current system of internal accounting control. Cause: The administration of the Village of Elizabeth is not large enough to permit an adequate segregation of duties in all respects for an effective system of internal accounting control. Effect: The existence of this material weakness has the potential for misstatement of financial statement amounts and those amounts may be material. The potential also exists for the misappropriation of assets. Recommendation: This situation dictates that the board of trustees remain involved in the financial affairs of the Village by providing oversight and independent review functions. Response: The Village board of trustees will continue to provide additional oversight by making the budget committee a permanent standing committee that will meet quarterly to go over finances presented to them by the clerk and treasurer. Additionally, the budget committee will continue to go over line items of the budget comparison looking for incorrect entries. Conclusion: Response accepted.

Categories

Internal Control / Segregation of Duties Material Weakness

Other Findings in this Audit

  • 394621 2022-001
    Material Weakness Repeat
  • 394622 2022-002
    Material Weakness Repeat
  • 394623 2022-003
    Material Weakness Repeat
  • 394624 2022-004
    Material Weakness Repeat
  • 394625 2022-001
    Material Weakness Repeat
  • 394626 2022-002
    Material Weakness Repeat
  • 394627 2022-003
    Material Weakness Repeat
  • 394628 2022-004
    Material Weakness Repeat
  • 394629 2022-001
    Material Weakness Repeat
  • 394630 2022-002
    Material Weakness Repeat
  • 394631 2022-003
    Material Weakness Repeat
  • 394632 2022-004
    Material Weakness Repeat
  • 971063 2022-001
    Material Weakness Repeat
  • 971064 2022-002
    Material Weakness Repeat
  • 971065 2022-003
    Material Weakness Repeat
  • 971066 2022-004
    Material Weakness Repeat
  • 971068 2022-002
    Material Weakness Repeat
  • 971069 2022-003
    Material Weakness Repeat
  • 971070 2022-004
    Material Weakness Repeat
  • 971071 2022-001
    Material Weakness Repeat
  • 971072 2022-002
    Material Weakness Repeat
  • 971073 2022-003
    Material Weakness Repeat
  • 971074 2022-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.760 Water and Waste Disposal Systems for Rural Communities $728,000
66.468 Capitalization Grants for Drinking Water State Revolving Funds $652,499
21.027 Coronavirus State and Local Fiscal Recovery Funds $49,076