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<br />Because of the limited size of your office staff, your organization has limited segregation of duties. A good <br />system of internal accounting control contemplates an adequate segregation of duties so that no one <br />individual handles a transaction from inception to completion. While we recognize that your organization <br />' is not large enough to permit an adequate segregation of duties in all respects, it is important that you be <br />aware of this condition. <br />A material weakness is a reportable condition in which. the design or operation of one or more of the <br />internal control structure elements does not reduce to a relatively low level the risk that noncompliance. with <br />laws and regulations that would be material to a federal fmancial. assistance program may occur and not <br />be detected within a timely period by employees in the normal course of performing their assigned <br />functions. <br />Our consideration of the internal control structure policies and procedures used in administering federal <br />financial assistance would not necessarily disclose all matters in the internal control structure that might <br />be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are <br />also considered to be material weaknesses as defined above. However, we believe that the reportable <br />condition described above is a material weakness. <br />These conditions were considered in determining the nature, timing, and extent of the procedures to be <br />performed in our audit of the City of Ramsey's general purpose financial statements and of its compliance <br />with requirements applicable to its federal fmancial assistance programs for the year ended December 31, <br />1996, and this report does not affect our reports thereon dated March 25, 1997. <br />We also noted other matters involving the internal control structure and its operation that we have reported <br />to the management of the City of Ramsey in a separate letter dated March 25, -1997. <br />This report is intended for the information of the City Council and management of the City of Ramsey, the <br />cognizant audit agency, and other federal agencies. However, this report is a matter of public record and <br />its distribution is not limited. <br /> <br /> <br /> <br /> <br /> <br /> <br />i <br />In <br />~~. /~...,~ ~1J,...~ ~oA <br />March 25, 1997 <br />-120- <br />