Finding Text
2023 – 002: Segregation of Duties - Compliance
Federal agency: All Programs
Federal program title: All Programs
Assistance Listing No.: All Programs
Award period: January 1, 2023 – December 31, 2023
Type of Finding:
• Internal Control, Material Weakness in Internal Control over Compliance
Criteria or specific requirement: It is the Authority’s responsibility to establish and maintain systems of internal control over compliance that includes proper segregation of duties.
Condition: The Authority does not have a system of internal controls over compliance built into the Authority’s policies and procedures that appropriately reduces the risk of noncompliance to an appropriately low level.
Context: While performing audit procedures, it was noted that the Authority does not have a system of internal controls over compliance built into the Authority’s policies and procedures that appropriately reduces the risk of noncompliance with respect to compliance requirements related to eligibility and special tests and provisions.
Cause: The Authority has not taken the appropriate steps to construct internal controls within their policies and procedures related to compliance with the Federal programs to the extent that the risk of noncompliance is reduced to an appropriately low level.
Effect: As a result of the lack of segregation of duties and internal control, there were several compliance findings noted that resulted in material noncompliance with respect to eligibility and special tests and provisions.
Repeat Finding: Yes; 2022-002.
Recommendation: We recommend that the Authority’s management reviews the accounting information which is the best means of preventing and detecting errors and irregularities.
Views of responsible officials: There is no disagreement with the audit finding.