CITY OF BUHLLocal Government

2021-001 Lack of segregation ofduties - Significant Deficiency Condition: Lack of segregation of duties over financial processes. Criteria: For an effective control system, division of accounting duties should exist to prevent errors or misappropriations from going undetected in the course of employees performing their assigned duties. Context: The lack of segregation of duties exists within the City 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 City's council 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 council members should also periodically perform on site inspections of assets and financial records. Views of Responsible Officials and Corrective Actions: The City agrees with the recommendations.

2020-00 I lack of segregation of duties - Significant Deficiency Condition: Lack of segregation of duties over financial processes. Criteria: For an effective control system, division of accounting duties should exist to prevent errors or misappropriations from going undetected in the course of employees performing their assigned duties. Context: The lack of segregation of duties exists within the City 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 City's council 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 council members should also periodically perform on site inspections of assets and financial records. Views of Responsible Officials and Corrective Actions: The City agrees with the recommendations.

2020-004 Written Policies and Procedures - Procurement Condition: Although the City complied with procurement processes and follows the State of Minnesota bidding and compliance statutes, the policies and procedures are not written. Uniform Guidance requires written policies and procedures over procurement processes that include federal expenditures. Policies and procedures are in place but are not written. Noncompliance with requirement to have written policies and procedures that cover federal procurement processes. Question Costs: Not applicable. Due to the resources available, a written manual has not yet been developed. Recommendation: The City is in the process of reviewing all policies and procedures to develop a manual that includes required verbiage. Views of Responsible Officials and Corrective Actions: The City concurs and will implement procedures necessary to monitor in the future.