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39 <br />CITY OF ST. ANTHONY, MINNESOTA <br />SCHEDULE OF FINDINGS AND QUESTIONED COSTS <br />For The Year Ended December 31, 2006 <br />2006-2 Lack of Segregation of Duties <br />Criteria: Generally, a system of internal control contemplates separation of duties such that <br />no individual has responsibility to execute a transaction, have physical access to the related <br />assets, and have responsibility or authority to record the transaction. <br />Condition• Utility bills are produced, payments are collected, and receipts are posted to the <br />utility system by a single employee. <br />Cause: The condition is due to the limited number of staff and is common to cities of this <br />size. <br />Effect: The lack of ideal segregation of duties subjects the City to a higher risk that errors or <br />fraud could occur and not be detected in a timely manner. <br />Recommendation: We recommend the Public Works Director continue reviewing all utility <br />adjustments and that the City remain aware of this situation. <br />Views of Responsible Officials and Corrective Action Plan: Despite having a small <br />accounting staff, the City recognizes the need to continually implement practices that will <br />ensure that all transactions and adjustments are well documented, reviewed for accuracy and <br />approved by the appropriate department head. In the past, this has been accomplished by <br />rotating and cross -training staff to fill in for different areas. <br />