Finding 2023-002 Segregation of Duties
Rural Rental Housing Loan Program Cluster:
Rural Rental Housing Loans, CFDA #10.415 – Year ended August 31, 2023
Rural Rental Housing Payments, CFDA #10.427 – Year ended August 31, 2023
Condition: Due to the size of the organization, there are not enough employees to adequately segregate incompatible duties.
Criteria: No individual should have access to the performing, recording and reconciling of any one type of transaction.
Effect: Because of the lack of segregation of duties, it is possible for an employee to misappropriate funds and conceal the transaction.
Cause: Organizational limitations do not allow the hiring of additional employees.
Auditor’s Recommendation: Because it is neither practical nor cost-efficient to have additional employees, the Board should continue to approve expenditures, sign checks, and periodically review the financial statements.
Grantee Response: We concur with the recommendation.
Finding 2023-002 Segregation of Duties
Rural Rental Housing Loan Program Cluster:
Rural Rental Housing Loans, CFDA #10.415 – Year ended August 31, 2023
Rural Rental Housing Payments, CFDA #10.427 – Year ended August 31, 2023
Condition: Due to the size of the organization, there are not enough employees to adequately segregate incompatible duties.
Criteria: No individual should have access to the performing, recording and reconciling of any one type of transaction.
Effect: Because of the lack of segregation of duties, it is possible for an employee to misappropriate funds and conceal the transaction.
Cause: Organizational limitations do not allow the hiring of additional employees.
Auditor’s Recommendation: Because it is neither practical nor cost-efficient to have additional employees, the Board should continue to approve expenditures, sign checks, and periodically review the financial statements.
Grantee Response: We concur with the recommendation.
Finding 2023-002 Segregation of Duties
Rural Rental Housing Loan Program Cluster:
Rural Rental Housing Loans, CFDA #10.415 – Year ended August 31, 2023
Rural Rental Housing Payments, CFDA #10.427 – Year ended August 31, 2023
Condition: Due to the size of the organization, there are not enough employees to adequately segregate incompatible duties.
Criteria: No individual should have access to the performing, recording and reconciling of any one type of transaction.
Effect: Because of the lack of segregation of duties, it is possible for an employee to misappropriate funds and conceal the transaction.
Cause: Organizational limitations do not allow the hiring of additional employees.
Auditor’s Recommendation: Because it is neither practical nor cost-efficient to have additional employees, the Board should continue to approve expenditures, sign checks, and periodically review the financial statements.
Grantee Response: We concur with the recommendation.
Finding 2023-002 Segregation of Duties
Rural Rental Housing Loan Program Cluster:
Rural Rental Housing Loans, CFDA #10.415 – Year ended August 31, 2023
Rural Rental Housing Payments, CFDA #10.427 – Year ended August 31, 2023
Condition: Due to the size of the organization, there are not enough employees to adequately segregate incompatible duties.
Criteria: No individual should have access to the performing, recording and reconciling of any one type of transaction.
Effect: Because of the lack of segregation of duties, it is possible for an employee to misappropriate funds and conceal the transaction.
Cause: Organizational limitations do not allow the hiring of additional employees.
Auditor’s Recommendation: Because it is neither practical nor cost-efficient to have additional employees, the Board should continue to approve expenditures, sign checks, and periodically review the financial statements.
Grantee Response: We concur with the recommendation.