EIN: 561552511
UEI: L44NFHLKM8H6
Audited by: Gibson & Company, P.A.
Oversight agency: 21 [Department of the Treasury]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 21, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by September 21, 2025 (343 days ago).
What is a management decision? →There is a lack of segregation of duties among Village personnel. Effect: Transaction could be mishandled. Cause: There are a limited number of personnel for certain functions. Identification of a repeat finding: This is a repeat finding from the immediate previous audit, 2023-1. Recommendation: The duties should be separated as much as possible and alternative controls should be used to compensate for lack of separation. Management Response: The Village agrees that there is a lack of segregation of duties due to single person finance staff and has segregated functions with the manager and clerk when possible. Review procedures are in place that are performed by the Manager or management team, Mayor, Mayor ProTem and Council to provide reasonable assurance that the financial statements are not misstated, however the Village also recognizes that reasonable assurance takes into consideration that the cost of the control should not exceed the benefits. Cash receipts are handled by clerk. The Council also receives a monthly financial report and check register. The manager receives direct confirmation from the County for County collected revenues that are direct deposited to the Village and reviews all checks before the Mayor or Mayor Pro Tem signs the check. The manager also reviews bank reconciliation on monthly basis and has access the financial software to review any accounts on a random basis. The Mayor or Mayor Pro Tem manually signs checks in order to have a second review of checks before they are mailed by clerk. During the year ended June 30, 2024 the Village of Clemmons added personnel and segregated some of the functions to improve internal controls.
Show full finding ▾Hide full finding ▴MATERIAL WEAKNESS 2024-1 Segregation of Duties Criteria: Duties should be segregated to provide reasonable assurance that transactions are handled properly. Condition: There is a lack of segregation of duties among Village personnel. Effect: Transaction could be mishandled. Cause: There are a limited number of personnel for certain functions. Identification of a repeat finding: This is a repeat finding from the immediate previous audit, 2023-1. Recommendation: The duties should be separated as much as possible and alternative controls should be used to compensate for lack of separation. Management Response: The Village agrees that there is a lack of segregation of duties due to single person finance staff and has segregated functions with the manager and clerk when possible. Review procedures are in place that are performed by the Manager or management team, Mayor, Mayor ProTem and Council to provide reasonable assurance that the financial statements are not misstated, however the Village also recognizes that reasonable assurance takes into consideration that the cost of the control should not exceed the benefits. Cash receipts are handled by clerk. The Council also receives a monthly financial report and check register. The manager receives direct confirmation from the County for County collected revenues that are direct deposited to the Village and reviews all checks before the Mayor or Mayor Pro Tem signs the check. The manager also reviews bank reconciliation on monthly basis and has access the financial software to review any accounts on a random basis. The Mayor or Mayor Pro Tem manually signs checks in order to have a second review of checks before they are mailed by clerk. During the year ended June 30, 2024 the Village of Clemmons added personnel and segregated some of the functions to improve internal controls.
Corrective Action: The Village has hired a planning and finance tech in April 2024 who has allowed the Village to segregate duties for accounts payable which according to our risk assessmnet is one of our highest risks. The department head's responsibility to review and approve invoices has increased. The Village involves the manager, assistant manager, mayor and mayor pro tem in the accounts payable process. The manager of assistant manager reviews all payments. The Village requires dual signatures on payables, the mayor or mayor pro tem is the second signatory. The Village also implented a change in the responsibilities of staff to segregate duties of the payroll function. The human resources officer processes payroll. We continue to look opportunities to cross-train employees. The Village has automated our receipt process with Open.Gov. The assingned employee generates an invoice for all payments, once the invoice is noted as paid OpenGov generates a journal entry in Excel for the finance officer or designee to record the payment. As part of management oversight, the Council receives a check register, cash balances, and a financial report monthly. The Village continues to review possible segregation of duties, if personnel expertise allows. Bank reconciliations are up to date. Proposed Completion Date: The Village has increased personnel and cross-trained employees to implement segregation of duties. The Village believes with the additional personnel and the management review procedures, that we have a process in place to prevent any material misstatements of the financial statements. We implemented this in April 2024, so the additional segregation of duties was in place at year end.
2023-001
FAC accepted this audit on July 10, 2024 — management decision was due January 10, 2025.
There is a lack of segregation of duties among Village personnel. Effect: Transaction could be mishandled. Cause: There are a limited number of personnel for certain functions. Identification of a repeat finding: This is a repeat finding from the immediate previous audit, 2022-1. Recommendation: The duties should be separated as much as possible and alternative controls should be used to compensate for lack of separation. Management Response: The Village agrees that there is a lack of segregation of duties due to single person finance staff and has segregated functions with the manager and clerk when possible. Review procedures are in place that are performed by the Manager or management team, Mayor, Mayor ProTem and Council to provide reasonable assurance that the financial statements are not misstated, however the Village also recognizes that reasonable assurance takes into consideration that the cost of the control should not exceed the benefits. Cash receipts are handled by clerk. The Council also receives a monthly financial report and check register. The manager receives direct confirmation from the County for County collected revenues that are direct deposited to the Village and reviews all checks before the Mayor or Mayor Pro Tem signs the check. The manager also reviews bank reconciliation on monthly basis and has access the financial software to review any accounts on a random basis. The Mayor or Mayor Pro Tem manually signs checks in order to have a second review of checks before they are mailed by clerk.
Show full finding ▾Hide full finding ▴MATERIAL WEAKNESS 2023-1 Segregation of Duties Criteria: Duties should be segregated to provide reasonable assurance that transactions are handled properly. Condition: There is a lack of segregation of duties among Village personnel. Effect: Transaction could be mishandled. Cause: There are a limited number of personnel for certain functions. Identification of a repeat finding: This is a repeat finding from the immediate previous audit, 2022-1. Recommendation: The duties should be separated as much as possible and alternative controls should be used to compensate for lack of separation. Management Response: The Village agrees that there is a lack of segregation of duties due to single person finance staff and has segregated functions with the manager and clerk when possible. Review procedures are in place that are performed by the Manager or management team, Mayor, Mayor ProTem and Council to provide reasonable assurance that the financial statements are not misstated, however the Village also recognizes that reasonable assurance takes into consideration that the cost of the control should not exceed the benefits. Cash receipts are handled by clerk. The Council also receives a monthly financial report and check register. The manager receives direct confirmation from the County for County collected revenues that are direct deposited to the Village and reviews all checks before the Mayor or Mayor Pro Tem signs the check. The manager also reviews bank reconciliation on monthly basis and has access the financial software to review any accounts on a random basis. The Mayor or Mayor Pro Tem manually signs checks in order to have a second review of checks before they are mailed by clerk.
Corrective Action: The duties are separated as much as possible with limited staff and alternative controls are in place to provide reasonable assurance that the financial statementsare not misstated. At this time, it would be cost prohibitive to add personnel just for segregationof duties. The Village recognizes that reasonable assurance takes into consideration that the costof internal control should not exceed the benefits. The manager or designated alternate is controlfor most of the finance functions such as review of accounts payable and bank statements. TheMayor or Mayor Pro Tem manually signs checks, so there is a second review before the checksare mailed. The Clerk mails the payable checks. The clerk the deposits and deposits with bankand the Finance Officer records. Purchase card transactions for public works is entered by senioradministrative assistant. The Council receives check register, cash balances and revenue andexpenditure review on a monthly basis. The Village continues to review possible segregationofduties, if personnel expertise allows. Proposed Completion Date: The Village has implemented the segregation of duties asmuch as possible without hiring additional personnel that is cost prohibitive at the moment. Wehave implemented review procedures with management that we believe would prevent anymaterial misstatements of the financial statements. Since the manager is the designated controlfor finance functions, there is an alternate designated by the Manager.
2022-001
FAC accepted this audit on August 6, 2023 — management decision was due February 6, 2024.
There is a lack of segregation of duties among Village personnel. Effect: Transaction could be mishandled. Cause: There are a limited number of personnel for certain functions. Identification of a repeat finding: This is a repeat finding from the immediate previous audit, 2021-001. Recommendation: The duties should be separated as much as possible and alternative controls should be used to compensate for lack of separation. Management Response: The Village agrees that there is a lack of segregation of duties due to single person finance staff and has segregated functions with the manager and clerk when possible. Review procedures are in place that are performed by the Manager or management team, Mayor, Mayor Pro Tem and Council to provide reasonable assurance that the financial statements are not misstated, however the Village also recognizes that reasonable assurance takes into consideration that the cost of the control should not exceed the benefits. Cash receipts are handled by clerk. The Council also receives a monthly financial report and check register. The manager receives direct confirmation from the County for County collected revenues that are direct deposited to the Village and reviews all checks before the Mayor or Mayor Pro Tem signs the check. The manager also reviews bank reconciliation on monthly basis and has access the financial software to review any accounts on a random basis. The Mayor or Mayor Pro Tem manually signs checks in order to have a second review of checks before they are mailed by clerk.
Show full finding ▾Hide full finding ▴MATERIAL WEAKNESS 2022 ? 1 Segregation of Duties Criteria: Duties should be segregated to provide reasonable assurance that transactions are handled properly. Condition: There is a lack of segregation of duties among Village personnel. Effect: Transaction could be mishandled. Cause: There are a limited number of personnel for certain functions. Identification of a repeat finding: This is a repeat finding from the immediate previous audit, 2021-001. Recommendation: The duties should be separated as much as possible and alternative controls should be used to compensate for lack of separation. Management Response: The Village agrees that there is a lack of segregation of duties due to single person finance staff and has segregated functions with the manager and clerk when possible. Review procedures are in place that are performed by the Manager or management team, Mayor, Mayor Pro Tem and Council to provide reasonable assurance that the financial statements are not misstated, however the Village also recognizes that reasonable assurance takes into consideration that the cost of the control should not exceed the benefits. Cash receipts are handled by clerk. The Council also receives a monthly financial report and check register. The manager receives direct confirmation from the County for County collected revenues that are direct deposited to the Village and reviews all checks before the Mayor or Mayor Pro Tem signs the check. The manager also reviews bank reconciliation on monthly basis and has access the financial software to review any accounts on a random basis. The Mayor or Mayor Pro Tem manually signs checks in order to have a second review of checks before they are mailed by clerk.
MATERIAL WEAKNESS 2022 ?001 Segregation of Duties Name of contact person: Ann Stroud, Finance Officer Corrective Action: The duties are separated a much as possible with limited staff and alternative controls are in place to provide reasonable assurance that the financial statements are not misstated. At this time, it would be cost prohibitive to add personnel just for segregation of duties. The Village recognizes that reasonable assurance takes into consideration that the cost of internal control should not exceed the benefits. The manager or designated alternate is control for most of the finance functions such as review of accounts payable and bank statements. The Mayor or Mayor Pro Tem manually signs checks, so there is a second review before the checks are mailed. The Clerk mails the payable checks. The clerk the deposits and deposits with bank and the Finance Officer records. Purchase card transactions for public works is entered by senior administrative assistant. The Council receives check register, cash balances and revenue and expenditure review on a monthly basis. The Village continues to review possible segregation of duties, if personnel expertise allows. Proposed Completion Date: The Village has implemented the segregation of duties as much as possible without hiring additional personnel that is cost prohibitive at the moment. We have implemented review procedures with management that we believe would prevent any material misstatements of the financial statements. Since the manager is the designated control for finance functions, there is an alternate designated by the Manager.
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