1995 CAFR - Laserfiche WebLink

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Because of the limited size of your office staff, your organization has limited segregation of duties. A good system of internal accounting control contemplates an adequate segregation of duties so that no one individual handles a transaction from inception to completion. While we recognize that your organization is not large enough to permit an adequate segregation of duties in all respects, it is important that you be aware of this condition. A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure policies and procedures used in administering federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable conditions described above are material weaknesses. These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the City of Ramsey's compliance with requirements applicable to its federal financial assistance programs for the year ended December 31, 1995, and this report does not affect our reports thereon dated March 26, 1996. We also noted other matters involving the internal control structure and its operation that we have reported to the management of the City of Ramsey in a separate letter dated March 26, 1996. This report is intended for the information of the City Council and management of the City of Ramsey, the cognizant audit agency, and other federal agencies. However, this report is a matter of public record and its distribution is not limited. March 26, 1996 d4