CITY OF SUNDANCE WYOMING

Separation of Duties Criteria: An effective internal control structure of an organization will include procedures and actions to: 1. Protect its assets against theft and waste. 2. Ensure compliance with the organization's policies, procedures and statutory 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 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. Condition: Due to the small size of the accounting department of the City, the possibility of adequate separation of duties over certain transaction cycles is limited. Recommendation: While we recognize that it is impractical for the City to achieve complete separation of duties over all transaction cycles within the City, it is important that the Council be aware of the chance of errors and irregularities not being timely detected is elevated. Auditee Response: The City has separated duties to the extent possible and has implemented compensating controls to monitor the accounting activities.

The City has separated duties to the extent possible and has implemented compensating controls to monitor the account activities