Finding 975057 (2023-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-05-28
Audit: 307370
Auditor: Sterle & CO LTD

AI Summary

  • Core Issue: There is a significant deficiency due to the lack of segregation of duties in financial processes.
  • Impacted Requirements: This deficiency affects all accounting and reporting functions, increasing the risk of undetected errors or misappropriations.
  • Recommended Follow-Up: The board should enhance oversight by reviewing bank activities, general ledger entries, and conducting on-site inspections of assets and records.

Finding Text

Lack of segregation of duites - siginficant deficiency - Condition: Lack of segregation of duites over financial processes Criteria: The lack of segregation of duties exists within the Authority 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 Authority's board 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 board members should also periodically perform on site inspections of assets and financial records. Views of Responsible Officials and Corrective Actions: The Authority agrees with the reocmmendations and has approved a corrrective action plan addressing additional oversight measures.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 398613 2023-001
    Significant Deficiency Repeat
  • 398614 2023-001
    Significant Deficiency Repeat
  • 398615 2023-001
    Significant Deficiency Repeat
  • 975055 2023-001
    Significant Deficiency Repeat
  • 975056 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program $4,500