2022-001 – Lack of Segregation of Duties
Criteria: Internal control is a process, affected by the Housing Authority of the County of Juneau's (the Authority)
board of commissioners, management, and other personnel, designed to provide reasonable assurance regarding
the achievement of objectives in the following categories: effectiveness and efficiency of operations, reliability of
financial reporting, and compliance with applicable laws and regulations. A good system of internal control provides
for an adequate segregation of duties so that no one individual handles a transaction from its inception to
completion.
Condition: Due to the limited employees and resources available to the Authority, many aspects of the internal
control structure that rely on segregation of duties are missing. Specific accounting processes noted that are
affected by the lack of segregation of duties include: cash disbursements, payroll disbursements, cash receipting,
and specific reporting functions required for the Authority.
Cause: Due to the limited number of personnel within the Authority, segregation of the accounting functions
necessary to ensure adequate internal accounting control is not possible. This is not unusual in operations the size
of the Authority; however, management should constantly be aware of this condition and realize that the
concentration of duties and responsibilities in a limited number of individuals is not desirable from an accounting
point of view.
Effect: Inadequate segregation of duties could adversely affect the Authority’s ability to detect misstatements in
amounts that would be material in relation to the financial statements in a timely period by personnel in the normal
course of performing their assigned functions.
Recommendation: We recommend that the Authority’s board of commissioners and management be aware of the
lack of segregation of the accounting functions and, where possible, implement oversight procedures to ensure the
internal control policies and procedures are being implemented by personnel to the extent possible.
View of Responsible Officials: Management agrees with the finding.
2022-001 – Lack of Segregation of Duties
Criteria: Internal control is a process, affected by the Housing Authority of the County of Juneau's (the Authority)
board of commissioners, management, and other personnel, designed to provide reasonable assurance regarding
the achievement of objectives in the following categories: effectiveness and efficiency of operations, reliability of
financial reporting, and compliance with applicable laws and regulations. A good system of internal control provides
for an adequate segregation of duties so that no one individual handles a transaction from its inception to
completion.
Condition: Due to the limited employees and resources available to the Authority, many aspects of the internal
control structure that rely on segregation of duties are missing. Specific accounting processes noted that are
affected by the lack of segregation of duties include: cash disbursements, payroll disbursements, cash receipting,
and specific reporting functions required for the Authority.
Cause: Due to the limited number of personnel within the Authority, segregation of the accounting functions
necessary to ensure adequate internal accounting control is not possible. This is not unusual in operations the size
of the Authority; however, management should constantly be aware of this condition and realize that the
concentration of duties and responsibilities in a limited number of individuals is not desirable from an accounting
point of view.
Effect: Inadequate segregation of duties could adversely affect the Authority’s ability to detect misstatements in
amounts that would be material in relation to the financial statements in a timely period by personnel in the normal
course of performing their assigned functions.
Recommendation: We recommend that the Authority’s board of commissioners and management be aware of the
lack of segregation of the accounting functions and, where possible, implement oversight procedures to ensure the
internal control policies and procedures are being implemented by personnel to the extent possible.
View of Responsible Officials: Management agrees with the finding.
2022-002 – Insufficient Collateral
Criteria: A good system of internal control contemplates an adequate system for monitoring the requirements of
pledged collateral
Condition: The Rural Development Audit Guide requires that any portion of Housing Authority Funds not insured by
a Federal insurance organization shall be fully (100%) and continuously collateralized with specific and identifiable
U.S. Government or Agency securities prescribed by Rural Development in a notice. Collateralization is required
on a daily basis at the end of the business day. Such securities shall be pledged and set aside in accordance with
applicable law or Federal regulations. The Authority had no pledged collateral as of December 31, 2022. The
Authority’s deposits were under collateralized by approximately $215,340 at December 31, 2022.
Cause: The Authority does not have an internal control system designed to properly monitor the requirements of
pledged collateral
Effect: At year-end, the Authority did not have sufficient collateral pledged and was not in compliance with RD
regulations. Additionally, non-compliance increases the custodial risk of the Authority.
Recommendation: We recommend the Authority monitor all deposits to determine there is adequate collateral
pledged to secure deposits in accordance with RD regulations.
View of Responsible Officials: The management of the Authority is in agreement with the finding.
2022-002 – Insufficient Collateral
Criteria: A good system of internal control contemplates an adequate system for monitoring the requirements of
pledged collateral
Condition: The Rural Development Audit Guide requires that any portion of Housing Authority Funds not insured by
a Federal insurance organization shall be fully (100%) and continuously collateralized with specific and identifiable
U.S. Government or Agency securities prescribed by Rural Development in a notice. Collateralization is required
on a daily basis at the end of the business day. Such securities shall be pledged and set aside in accordance with
applicable law or Federal regulations. The Authority had no pledged collateral as of December 31, 2022. The
Authority’s deposits were under collateralized by approximately $215,340 at December 31, 2022.
Cause: The Authority does not have an internal control system designed to properly monitor the requirements of
pledged collateral
Effect: At year-end, the Authority did not have sufficient collateral pledged and was not in compliance with RD
regulations. Additionally, non-compliance increases the custodial risk of the Authority.
Recommendation: We recommend the Authority monitor all deposits to determine there is adequate collateral
pledged to secure deposits in accordance with RD regulations.
View of Responsible Officials: The management of the Authority is in agreement with the finding.
Criteria: Internal controls over financial reporting should exist to ensure that material misstatements are prevented,
detected, and corrected by management in a timely manner.
Condition: Audit procedures over long-term obligations, revenue, and unrestricted net position identified several
errors, misclassifications and unrecorded liabilities that resulted in material adjustments. We proposed material
audit adjustments that would not have been identified as a result of the Authority's existing internal control system
and, therefore, could have resulted in a material misstatement of the Authority's financial statements. The material
misstatements detected as a result of audit procedures were corrected by management.
Cause: The Authority did not have the proper controls in place to detect misstatements in the financial statements.
Effect: The accounting records for the long-term obligations, revenue, and unrestricted net position required material
adjustments to be proposed and recorded in order for the financial statements to be fairly presented in accordance
with accounting principles generally accepted in the United States of America.
Recommendation: We would recommend the Authority review all adjusting entries posted and make all such
necessary adjustments in the future. We would recommend the Executive Director monitor all financial activity and
adjust account balances as needed throughout the year and at year-end to prevent misstatements from occurring.
Views of Responsible Official: Management agrees with the finding. The Authority will review all adjusting entries
posted and make all such necessary adjustments in the future. The Executive Director will continue to monitor all
financial activity and adjust account balances as needed throughout the year and at year-end to prevent
misstatements from occurring.
Criteria: Internal controls over financial reporting should exist to ensure that material misstatements are prevented,
detected, and corrected by management in a timely manner.
Condition: Audit procedures over long-term obligations, revenue, and unrestricted net position identified several
errors, misclassifications and unrecorded liabilities that resulted in material adjustments. We proposed material
audit adjustments that would not have been identified as a result of the Authority's existing internal control system
and, therefore, could have resulted in a material misstatement of the Authority's financial statements. The material
misstatements detected as a result of audit procedures were corrected by management.
Cause: The Authority did not have the proper controls in place to detect misstatements in the financial statements.
Effect: The accounting records for the long-term obligations, revenue, and unrestricted net position required material
adjustments to be proposed and recorded in order for the financial statements to be fairly presented in accordance
with accounting principles generally accepted in the United States of America.
Recommendation: We would recommend the Authority review all adjusting entries posted and make all such
necessary adjustments in the future. We would recommend the Executive Director monitor all financial activity and
adjust account balances as needed throughout the year and at year-end to prevent misstatements from occurring.
Views of Responsible Official: Management agrees with the finding. The Authority will review all adjusting entries
posted and make all such necessary adjustments in the future. The Executive Director will continue to monitor all
financial activity and adjust account balances as needed throughout the year and at year-end to prevent
misstatements from occurring.
2022-001 – Lack of Segregation of Duties
Criteria: Internal control is a process, affected by the Housing Authority of the County of Juneau's (the Authority)
board of commissioners, management, and other personnel, designed to provide reasonable assurance regarding
the achievement of objectives in the following categories: effectiveness and efficiency of operations, reliability of
financial reporting, and compliance with applicable laws and regulations. A good system of internal control provides
for an adequate segregation of duties so that no one individual handles a transaction from its inception to
completion.
Condition: Due to the limited employees and resources available to the Authority, many aspects of the internal
control structure that rely on segregation of duties are missing. Specific accounting processes noted that are
affected by the lack of segregation of duties include: cash disbursements, payroll disbursements, cash receipting,
and specific reporting functions required for the Authority.
Cause: Due to the limited number of personnel within the Authority, segregation of the accounting functions
necessary to ensure adequate internal accounting control is not possible. This is not unusual in operations the size
of the Authority; however, management should constantly be aware of this condition and realize that the
concentration of duties and responsibilities in a limited number of individuals is not desirable from an accounting
point of view.
Effect: Inadequate segregation of duties could adversely affect the Authority’s ability to detect misstatements in
amounts that would be material in relation to the financial statements in a timely period by personnel in the normal
course of performing their assigned functions.
Recommendation: We recommend that the Authority’s board of commissioners and management be aware of the
lack of segregation of the accounting functions and, where possible, implement oversight procedures to ensure the
internal control policies and procedures are being implemented by personnel to the extent possible.
View of Responsible Officials: Management agrees with the finding.
2022-001 – Lack of Segregation of Duties
Criteria: Internal control is a process, affected by the Housing Authority of the County of Juneau's (the Authority)
board of commissioners, management, and other personnel, designed to provide reasonable assurance regarding
the achievement of objectives in the following categories: effectiveness and efficiency of operations, reliability of
financial reporting, and compliance with applicable laws and regulations. A good system of internal control provides
for an adequate segregation of duties so that no one individual handles a transaction from its inception to
completion.
Condition: Due to the limited employees and resources available to the Authority, many aspects of the internal
control structure that rely on segregation of duties are missing. Specific accounting processes noted that are
affected by the lack of segregation of duties include: cash disbursements, payroll disbursements, cash receipting,
and specific reporting functions required for the Authority.
Cause: Due to the limited number of personnel within the Authority, segregation of the accounting functions
necessary to ensure adequate internal accounting control is not possible. This is not unusual in operations the size
of the Authority; however, management should constantly be aware of this condition and realize that the
concentration of duties and responsibilities in a limited number of individuals is not desirable from an accounting
point of view.
Effect: Inadequate segregation of duties could adversely affect the Authority’s ability to detect misstatements in
amounts that would be material in relation to the financial statements in a timely period by personnel in the normal
course of performing their assigned functions.
Recommendation: We recommend that the Authority’s board of commissioners and management be aware of the
lack of segregation of the accounting functions and, where possible, implement oversight procedures to ensure the
internal control policies and procedures are being implemented by personnel to the extent possible.
View of Responsible Officials: Management agrees with the finding.
2022-002 – Insufficient Collateral
Criteria: A good system of internal control contemplates an adequate system for monitoring the requirements of
pledged collateral
Condition: The Rural Development Audit Guide requires that any portion of Housing Authority Funds not insured by
a Federal insurance organization shall be fully (100%) and continuously collateralized with specific and identifiable
U.S. Government or Agency securities prescribed by Rural Development in a notice. Collateralization is required
on a daily basis at the end of the business day. Such securities shall be pledged and set aside in accordance with
applicable law or Federal regulations. The Authority had no pledged collateral as of December 31, 2022. The
Authority’s deposits were under collateralized by approximately $215,340 at December 31, 2022.
Cause: The Authority does not have an internal control system designed to properly monitor the requirements of
pledged collateral
Effect: At year-end, the Authority did not have sufficient collateral pledged and was not in compliance with RD
regulations. Additionally, non-compliance increases the custodial risk of the Authority.
Recommendation: We recommend the Authority monitor all deposits to determine there is adequate collateral
pledged to secure deposits in accordance with RD regulations.
View of Responsible Officials: The management of the Authority is in agreement with the finding.
2022-002 – Insufficient Collateral
Criteria: A good system of internal control contemplates an adequate system for monitoring the requirements of
pledged collateral
Condition: The Rural Development Audit Guide requires that any portion of Housing Authority Funds not insured by
a Federal insurance organization shall be fully (100%) and continuously collateralized with specific and identifiable
U.S. Government or Agency securities prescribed by Rural Development in a notice. Collateralization is required
on a daily basis at the end of the business day. Such securities shall be pledged and set aside in accordance with
applicable law or Federal regulations. The Authority had no pledged collateral as of December 31, 2022. The
Authority’s deposits were under collateralized by approximately $215,340 at December 31, 2022.
Cause: The Authority does not have an internal control system designed to properly monitor the requirements of
pledged collateral
Effect: At year-end, the Authority did not have sufficient collateral pledged and was not in compliance with RD
regulations. Additionally, non-compliance increases the custodial risk of the Authority.
Recommendation: We recommend the Authority monitor all deposits to determine there is adequate collateral
pledged to secure deposits in accordance with RD regulations.
View of Responsible Officials: The management of the Authority is in agreement with the finding.
Criteria: Internal controls over financial reporting should exist to ensure that material misstatements are prevented,
detected, and corrected by management in a timely manner.
Condition: Audit procedures over long-term obligations, revenue, and unrestricted net position identified several
errors, misclassifications and unrecorded liabilities that resulted in material adjustments. We proposed material
audit adjustments that would not have been identified as a result of the Authority's existing internal control system
and, therefore, could have resulted in a material misstatement of the Authority's financial statements. The material
misstatements detected as a result of audit procedures were corrected by management.
Cause: The Authority did not have the proper controls in place to detect misstatements in the financial statements.
Effect: The accounting records for the long-term obligations, revenue, and unrestricted net position required material
adjustments to be proposed and recorded in order for the financial statements to be fairly presented in accordance
with accounting principles generally accepted in the United States of America.
Recommendation: We would recommend the Authority review all adjusting entries posted and make all such
necessary adjustments in the future. We would recommend the Executive Director monitor all financial activity and
adjust account balances as needed throughout the year and at year-end to prevent misstatements from occurring.
Views of Responsible Official: Management agrees with the finding. The Authority will review all adjusting entries
posted and make all such necessary adjustments in the future. The Executive Director will continue to monitor all
financial activity and adjust account balances as needed throughout the year and at year-end to prevent
misstatements from occurring.
Criteria: Internal controls over financial reporting should exist to ensure that material misstatements are prevented,
detected, and corrected by management in a timely manner.
Condition: Audit procedures over long-term obligations, revenue, and unrestricted net position identified several
errors, misclassifications and unrecorded liabilities that resulted in material adjustments. We proposed material
audit adjustments that would not have been identified as a result of the Authority's existing internal control system
and, therefore, could have resulted in a material misstatement of the Authority's financial statements. The material
misstatements detected as a result of audit procedures were corrected by management.
Cause: The Authority did not have the proper controls in place to detect misstatements in the financial statements.
Effect: The accounting records for the long-term obligations, revenue, and unrestricted net position required material
adjustments to be proposed and recorded in order for the financial statements to be fairly presented in accordance
with accounting principles generally accepted in the United States of America.
Recommendation: We would recommend the Authority review all adjusting entries posted and make all such
necessary adjustments in the future. We would recommend the Executive Director monitor all financial activity and
adjust account balances as needed throughout the year and at year-end to prevent misstatements from occurring.
Views of Responsible Official: Management agrees with the finding. The Authority will review all adjusting entries
posted and make all such necessary adjustments in the future. The Executive Director will continue to monitor all
financial activity and adjust account balances as needed throughout the year and at year-end to prevent
misstatements from occurring.