Finding 977450 (2023-001)

2023-001. SEGREGATION OF DUTIES Criteria The concentration of duties and responsibilities in a limited number of individuals is not desirable from an internal accounting control point of view. Condition Due to the limited number of personnel within the City’s business office, the segregation of accounting functions necessary to ensure adequate internal accounting control is not possible. Effect Because of the weakness in segregation of duties, the City has not provided adequate internal control. Cause This occurred because of staffing limitations caused by fiscal constraints. Recommendations City officials and management should constantly be aware of this condition, attempt to segregate duties as much as possible, and provide oversight to partially compensate for this deficiency. Views of Responsible Officials and Planned Corrective Action Management agrees with the audit finding. The City Clerk-Treasurer will continue to monitor all transactions and the City’s administration will structure the duties of office personnel to help ensure as much segregation of duties as possible within the City’s staffing limitations and funding constraints. ENVIRONMENTAL PROTECTION AGENCY Capitalization Grants for Clean Water State Revolving Funds – Assistance Listing No. 66.458– Grant Period – Year ended December 31, 2023. The significant deficiency of lack of segregation of duties, as discussed in Section II, finding 2023-001, also applies to this grant. Finding: 2023-001 Name of Contact Person: Robecca Jaeger, City Clerk-Treasurer Corrective Action: The City Clerk-Treasurer will attempt to monitor transactions and structure the duties of office personnel to help ensure as much segregation of duties as possible within the City’s staffing limitations and funding constraints. Proposed Completion Date: The City’s Clerk-Treasurer has been monitoring transactions and reviewing the duties of office personnel on an ongoing basis.