2022-001 Segregation of Duties Criteria: There should be adequate segregation of duties within the entity's accounting department to ensure effective internal control. Condition: There is a lack of segregation within Williamsburg Area Improved Dwellings, Inc.'s ("WAID") accounting department. Effect: Errors or misstatements may not be detected. Cause: WAID only has one staff person in its accounting department. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: Implementation of compensating controls to mitigate the lack of segregation. Management's Response: WAID agrees with this finding and will adhere to the corrective action plan detailed in the following section.
2022-002 Inadequate Documentation of the Components of Internal Control Criteria: The components of internal control and the related processes should be clearly documented and all employees should be aware of them. Condition: Although functioning controls are in place they have not been documented. Effect: There is a risk that G;ontrols may become ineffective due to staff turnover or deterioration of processes. Cause: The limited staff of WAID has precluded them from documenting control procedures. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: Document existing control policies and procedures. Management's Response: WAID agrees with this finding and will adhere to the corrective action plan detailed in the following section.
2022-003 Knowledge of Generally Accepted Accounting Principles to Prepare Financial Statements Criteria: Management is tasked with assigning an individual with the experience and/or knowledge to review the financial statements and ensure compliance with generally accepted accounting principles. Condition: WAID's management does not possess the appropriate level of accounting knowledge to ensure that the financial statements comply with generally accepted accounting principles. Effect: Financial statements may no be in compliance with generally accepted accounting principles. Cause: Due to the relatively small size of WAID they are unable to support a staff member with the appropriate level of accounting knowledge to ensure the financial statements conform to generally accepted accounting principles. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: WAID management should review the financial statements comparing them to a list of disclosure requirements in accordance with generally accepted accounting principles to ensure compliance. Management's Response: WAID agrees with this finding and will adhere to
2022-001 Segregation of Duties Criteria: There should be adequate segregation of duties within the entity's accounting department to ensure effective internal control. Condition: There is a lack of segregation within Williamsburg Area Improved Dwellings, Inc.'s ("WAID") accounting department. Effect: Errors or misstatements may not be detected. Cause: WAID only has one staff person in its accounting department. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: Implementation of compensating controls to mitigate the lack of segregation. Management's Response: WAID agrees with this finding and will adhere to the corrective action plan detailed in the following section.
2022-002 Inadequate Documentation of the Components of Internal Control Criteria: The components of internal control and the related processes should be clearly documented and all employees should be aware of them. Condition: Although functioning controls are in place they have not been documented. Effect: There is a risk that G;ontrols may become ineffective due to staff turnover or deterioration of processes. Cause: The limited staff of WAID has precluded them from documenting control procedures. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: Document existing control policies and procedures. Management's Response: WAID agrees with this finding and will adhere to the corrective action plan detailed in the following section.
2022-003 Knowledge of Generally Accepted Accounting Principles to Prepare Financial Statements Criteria: Management is tasked with assigning an individual with the experience and/or knowledge to review the financial statements and ensure compliance with generally accepted accounting principles. Condition: WAID's management does not possess the appropriate level of accounting knowledge to ensure that the financial statements comply with generally accepted accounting principles. Effect: Financial statements may no be in compliance with generally accepted accounting principles. Cause: Due to the relatively small size of WAID they are unable to support a staff member with the appropriate level of accounting knowledge to ensure the financial statements conform to generally accepted accounting principles. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: WAID management should review the financial statements comparing them to a list of disclosure requirements in accordance with generally accepted accounting principles to ensure compliance. Management's Response: WAID agrees with this finding and will adhere to
2022-001 Segregation of Duties Criteria: There should be adequate segregation of duties within the entity's accounting department to ensure effective internal control. Condition: There is a lack of segregation within Williamsburg Area Improved Dwellings, Inc.'s ("WAID") accounting department. Effect: Errors or misstatements may not be detected. Cause: WAID only has one staff person in its accounting department. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: Implementation of compensating controls to mitigate the lack of segregation. Management's Response: WAID agrees with this finding and will adhere to the corrective action plan detailed in the following section.
2022-002 Inadequate Documentation of the Components of Internal Control Criteria: The components of internal control and the related processes should be clearly documented and all employees should be aware of them. Condition: Although functioning controls are in place they have not been documented. Effect: There is a risk that G;ontrols may become ineffective due to staff turnover or deterioration of processes. Cause: The limited staff of WAID has precluded them from documenting control procedures. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: Document existing control policies and procedures. Management's Response: WAID agrees with this finding and will adhere to the corrective action plan detailed in the following section.
2022-003 Knowledge of Generally Accepted Accounting Principles to Prepare Financial Statements Criteria: Management is tasked with assigning an individual with the experience and/or knowledge to review the financial statements and ensure compliance with generally accepted accounting principles. Condition: WAID's management does not possess the appropriate level of accounting knowledge to ensure that the financial statements comply with generally accepted accounting principles. Effect: Financial statements may no be in compliance with generally accepted accounting principles. Cause: Due to the relatively small size of WAID they are unable to support a staff member with the appropriate level of accounting knowledge to ensure the financial statements conform to generally accepted accounting principles. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: WAID management should review the financial statements comparing them to a list of disclosure requirements in accordance with generally accepted accounting principles to ensure compliance. Management's Response: WAID agrees with this finding and will adhere to
2022-001 Segregation of Duties Criteria: There should be adequate segregation of duties within the entity's accounting department to ensure effective internal control. Condition: There is a lack of segregation within Williamsburg Area Improved Dwellings, Inc.'s ("WAID") accounting department. Effect: Errors or misstatements may not be detected. Cause: WAID only has one staff person in its accounting department. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: Implementation of compensating controls to mitigate the lack of segregation. Management's Response: WAID agrees with this finding and will adhere to the corrective action plan detailed in the following section.
2022-002 Inadequate Documentation of the Components of Internal Control Criteria: The components of internal control and the related processes should be clearly documented and all employees should be aware of them. Condition: Although functioning controls are in place they have not been documented. Effect: There is a risk that G;ontrols may become ineffective due to staff turnover or deterioration of processes. Cause: The limited staff of WAID has precluded them from documenting control procedures. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: Document existing control policies and procedures. Management's Response: WAID agrees with this finding and will adhere to the corrective action plan detailed in the following section.
2022-003 Knowledge of Generally Accepted Accounting Principles to Prepare Financial Statements Criteria: Management is tasked with assigning an individual with the experience and/or knowledge to review the financial statements and ensure compliance with generally accepted accounting principles. Condition: WAID's management does not possess the appropriate level of accounting knowledge to ensure that the financial statements comply with generally accepted accounting principles. Effect: Financial statements may no be in compliance with generally accepted accounting principles. Cause: Due to the relatively small size of WAID they are unable to support a staff member with the appropriate level of accounting knowledge to ensure the financial statements conform to generally accepted accounting principles. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: WAID management should review the financial statements comparing them to a list of disclosure requirements in accordance with generally accepted accounting principles to ensure compliance. Management's Response: WAID agrees with this finding and will adhere to