Audit 334739

FY End
2024-06-30
Total Expended
$4.03M
Findings
44
Programs
12
Year: 2024 Accepted: 2024-12-24

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
516776 2024-001 Material Weakness Yes P
516777 2024-001 Material Weakness Yes P
516778 2024-001 Material Weakness Yes P
516779 2024-001 Material Weakness Yes P
516780 2024-001 Material Weakness Yes P
516781 2024-001 Material Weakness Yes P
516782 2024-001 Material Weakness Yes P
516783 2024-001 Material Weakness Yes P
516784 2024-001 Material Weakness Yes P
516785 2024-001 Material Weakness Yes P
516786 2024-001 Material Weakness Yes P
516787 2024-001 Material Weakness Yes P
516788 2024-001 Material Weakness Yes P
516789 2024-001 Material Weakness Yes P
516790 2024-001 Material Weakness Yes P
516791 2024-001 Material Weakness Yes P
516792 2024-001 Material Weakness Yes P
516793 2024-001 Material Weakness Yes P
516794 2024-001 Material Weakness Yes P
516795 2024-001 Material Weakness Yes P
516796 2024-001 Material Weakness Yes P
516797 2024-001 Material Weakness Yes P
1093218 2024-001 Material Weakness Yes P
1093219 2024-001 Material Weakness Yes P
1093220 2024-001 Material Weakness Yes P
1093221 2024-001 Material Weakness Yes P
1093222 2024-001 Material Weakness Yes P
1093223 2024-001 Material Weakness Yes P
1093224 2024-001 Material Weakness Yes P
1093225 2024-001 Material Weakness Yes P
1093226 2024-001 Material Weakness Yes P
1093227 2024-001 Material Weakness Yes P
1093228 2024-001 Material Weakness Yes P
1093229 2024-001 Material Weakness Yes P
1093230 2024-001 Material Weakness Yes P
1093231 2024-001 Material Weakness Yes P
1093232 2024-001 Material Weakness Yes P
1093233 2024-001 Material Weakness Yes P
1093234 2024-001 Material Weakness Yes P
1093235 2024-001 Material Weakness Yes P
1093236 2024-001 Material Weakness Yes P
1093237 2024-001 Material Weakness Yes P
1093238 2024-001 Material Weakness Yes P
1093239 2024-001 Material Weakness Yes P

Contacts

Name Title Type
RFLENQ6M62B1 Mike Muehl Auditee
2177186399 Kamryn Schrepfer Auditor
No contacts on file

Notes to SEFA

Title: Noncash Assistance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Two Rivers Regional Council of Public Officials and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Agency submits a detailed cost report to its cognizant agency for approval annually. Nonmonetary assistance is reported in the accompanying Schedule of Expenditures of Federal Awards at the fair market value of the commodities received and disbursed. During the year ended June 30, 2024, Two Rivers Regional Council of Public Officials received no nonmonetary federal awards.
Title: Calculation of EDA Revolving Loan for Schedule of Expenditures of Federal Awards Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Two Rivers Regional Council of Public Officials and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Agency submits a detailed cost report to its cognizant agency for approval annually. EDA Revolving Loan consisted of the following at June 30, 2024: Cash in Bank $413,102 plus Loan Receivables $120,770 plus Administrative Expenses $2,819 equals $536,691.
Title: Insurance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Two Rivers Regional Council of Public Officials and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Agency submits a detailed cost report to its cognizant agency for approval annually. As of and for the year ended June 30, 2024, Two Rivers Regional Council of Public Officials had no federal insurance in effect.
Title: Subrecipients Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Two Rivers Regional Council of Public Officials and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Agency submits a detailed cost report to its cognizant agency for approval annually. Two Rivers Regional Council of Public Officials did not disburse any federal funds to subrecipients during the year ended June 30, 2024.

Finding Details

Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.
Condition The Agency had a lack of segregation of duties during the year ended June 30, 2024. Criteria Federal grant guidelines require grantees to have systems in place that provide reasonable assurance that the information is accurate, allowable, and compliant with the terms and conditions of each grant. Grantees must also adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause Due to the limited number of accounting staff, the Finance Director is involved in many aspects of a transaction. For example, in cash disbursement transactions, the Finance Director generally prepares the checks and records the transactions. Effect The Finance Director performed most of the accounting functions, resulting in a lack of segregation of duties. Recommendation We recommend that the Agency hire a Fiscal Clerk or use existing staff to separate the accounting functions of custody, recordkeeping and authorization. We also recommend that the Executive Director continue to sign off on all check requisitions, journal entries and bank reconciliations as a compensating control. Views of Responsible Officials Agree.