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<br />Finding <br /> <br />2006-1 <br /> <br />2006-2 <br /> <br />CITY OF CENTERVILLE, MINNESOTA <br />SCHEDULE OF FINDINGS <br />DECEMBER 31,2006 <br /> <br />Description <br /> <br />Segregation of Duties <br /> <br />Our study and evaluation disclosed that because of the limited size of your office staff, the City has limited <br />segregation of duties. A good internal control structure contemplates and adequate segregation of duties so that <br />no one individual handles transactions from inception to completion. While we recognize that the City is not <br />large enough to permit an adequate segregation of duties in all respects, it is important that you be aware of this <br />reportable condition. <br /> <br />Maintenance of the Accounting System <br /> <br />During our audit, adjustments were needed to correct coding and reclassifY amounts to correct funds. This <br />indicates that it would be likely that a misstatement may occur and not be detected by the City's internal <br />control. The audit firm can not serve as a compensating control over this condition. This condition is common <br />in smaller governments and is mainly due to a lack of training and education in the technical issues of <br />governmental accounting. We recommend that the City participate in industry association training provided by <br />the Minnesota Clerks and Finance Officers Association, Minnesota Government Finance Officers Association <br />or any other accounting focused training. We also recommend that the City review each journal entry we made <br />and become proficient at creating the support that was necessary to make the entry. <br /> <br />-59- <br />