TOWN OF EVANSVILLE, WYOMINGLocal Government

SEGRATION OF DUTIES: CRITERIA: AN EFFECTIVE INTERNAL CONTROL STURCTURE OF AN ORGANIZATION WILL INCLUDE PROCEDURES AND ACTIONS TO: 1 PROTECT THE ASSETS ATAINST THEIFT AND WASTE. 2 ENSURE COMPLIANCE WITH THE ORGANIZATIONS'S POLICIES, PROCEDURES, AND STATUTORY REQUIREMENTS. 3 EVALUATE THE PERFORMANCE OF PERSONNEL TO PROMOTE EFFICIENT OPERATIONS. 4 ENSURE ACCURATE AND RELIABLE OPERATING AND ACCOUTING DATA. SEPARATION OF DUTIES REQQUIRES THAT SOMEONE OTHER THAN THE EMPLOYEE RESPONSIBLE FOR SAFEGUARDING THE ASSET MUST MAINTAIN THE ACCOUNTING RECORDS FOR THAT ASSET. WHEN AN ORGANIZATION SEPARATES DUTIES OF THE EMPLOYEES, IT MINIMIZES THE PROBABLITIY OF AN ERROR OR IRREGULARITY OCCURING AND NOT BEING TIMELY DETECTED. CAUSE: DUE TO THE SMALL SIZE OF SOME DEPARTMENTS OF THE TOWN OF EVANSVILLE, WYOMING, THE POSSIBILTY OF ADEQUATE SEPARATION OF DUTIES OVER CERTAIN TRANSACTION CYCLES IS LIMITED. EFFECT: THE POTENTIAL EFFECT OF THE INTERNAL CONTROL DEFICIENCY IS AN INCREASE IN THE RISK OF FRAUD AND UNDETECTED ERRORS IN THE PROCESSING OF FINANCIAL TRANSACTIONS. RECOMMENDATION: WHILE I RECOGNIZE THAT IS IS IMPRACTICAL FOR THE TOWN TO ACHIEVE THE COMPLETE SEPARATION OF DUTIES OVER ALL TRANSACTIONS WITHIN THE TOWN, IT IS IMPORTANT THAT THE BOARD BE AWARE OF THE CHANCE OF ERRORS AND IRREGULARTIEIS, NOT BEING TIMELY DETECTED IS ELEVATED.

Criteria: An effective internal control structure of an organization will include procedures and actions to:1 Protect is assets against theft and waste. 2. Ensure compliance with the organization's policies, procedres and statutaory requirements. 3 Evaluate the performance of personnel to promote efficient operations. 4 Ensure accurate and reliable operating and accounting data. Separation of duties requires that someone other than the employee responsible for safeguarding the asset must maintian the accounts. Effect: This potentioal effect of the internal control deficiency is an increase in the risk of fraud and undetected errors in the processing Recommendation: While I recoginize that it is impracitcal for the Town to achieve complete separation of duties over all transaction. The Council needs to be aware and enforce controls; Auditees Response - See the Towns response in their plan of action.

2022-01 Lack of Segregation of duties Criteria: An effective internal control structure of an organization will include procedures and action to protect its assets, against theft and waste, ensure compliance with the organization?s policies, procedures and statutory requirements, evaluate the performance of personnel to promote effective operations, and to ensure accurate and reliable operating and accounting data. Condition: Due to the small size of some departments of the Town of Evansville, Wyoming, the possibility of adequate separation of duties over certain transactions cycles is limited. Effect: Separation of duties requires that someone other than the employee responsible for safe-guarding the asset must maintain the accounting records for that asset. When an organization separates duties of the employees, it minimizes the probability of an error or irregularity occurring and not being timely detected. Recommendation: While I recognize that it is impractical for the Town to achieve complete separation of duties over all transaction cycles within the Town, it is important that the Council be aware of the chance of errors and irregularities not being timely detected is elevated.