City of DeKalb’s Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2016, contains a letter to management from the auditors that discusses a “significant deficiency” in DeKalb’s internal accounting controls.
The DeKalb city council is set to discuss the report during its Committee of the Whole meeting January 9 at 5 pm.
Here is how the auditor defines “significant deficiency” in the management letter (my emphasis):
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency or a combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.