Discussion and Review of City of Tiffin FY 2025 Audit – BerganKDV

City of Tiffin Material Weakness Lack of Segregation of Accounting Duties The City has a lack of segregation of accounting duties due to a limited number of office employees. The lack of adequate segregation of accounting duties could adversely affect the City's ability to initiate, record, process, and report financial data consistent with the assertions of management in the financial statements. This lack of segregation can be demonstrated in the following areas, which is not intended to be an all-inclusive list: • The City Clerk has access to all areas of the accounting system. • The Utility Billing Clerk reviews meter readings, makes adjustments, and prepares utility bills without review. • The City Clerk has the ability to record journal entries without review. • The City Clerk has the ability to add employees, is the backup for processing payroll, and has the ability to authorize wire transfers. This finding impacts the internal control for all significant accounting functions. 3