Finding 1084864 (2023-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-11-20

AI Summary

  • Core Issue: There is insufficient segregation of duties in accounting and bookkeeping, increasing the risk of errors and asset mismanagement.
  • Impacted Requirements: Best practices dictate that different individuals should handle accounting and bookkeeping tasks to ensure accuracy and safeguard assets.
  • Recommended Follow-Up: Supervisors and the Board should remain vigilant about this internal control deficiency, even if hiring more staff isn't feasible.

Finding Text

SIGNIFICANT DEFICIENCY Finding 2023-001: SEGREGATION OF DUTIES Repeat Finding from Prior Year Yes Condition The number of employees performing accounting and bookkeeping duties is not sufficient to provide an adequate segregation of duties. Criteria Circumstances permitting, accounting and bookkeeping duties should be assigned to different individuals to promote safeguarding of assets and accuracy of financial information. Cause The Association has limited resources that minimize the possibility to segregate the functions within the business office. Effect Because of the limited number of individuals involved in the accounting and bookkeeping functions, there is a greater risk that assets will not be properly safeguarded and that errors in financial information will occur and not be detected in a timely manner. Questioned Costs Not applicable Sampling Method Not applicable Recommendation Although it is not cost efficient to increase the number of employees performing accounting and bookkeeping functions, all employees either supervising or performing the duties, and the Board of Directors of the Association should constantly be aware of this deficiency in internal controls. Response and Views of Responsible Officials See Corrective Action Plan and Response to Findings.

Categories

Internal Control / Segregation of Duties Significant Deficiency

Other Findings in this Audit

  • 508418 2023-001
    Significant Deficiency Repeat
  • 508419 2023-002
    Material Weakness
  • 508420 2023-001
    Significant Deficiency Repeat
  • 508421 2023-002
    Material Weakness
  • 508422 2023-001
    Significant Deficiency Repeat
  • 508423 2023-002
    Material Weakness
  • 508424 2023-001
    Significant Deficiency Repeat
  • 508425 2023-002
    Material Weakness
  • 1084860 2023-001
    Significant Deficiency Repeat
  • 1084861 2023-002
    Material Weakness
  • 1084862 2023-001
    Significant Deficiency Repeat
  • 1084863 2023-002
    Material Weakness
  • 1084865 2023-002
    Material Weakness
  • 1084866 2023-001
    Significant Deficiency Repeat
  • 1084867 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
20.509 Formula Grants for Rural Areas and Tribal Transit Program $741,903
93.569 Community Services Block Grant $467,529
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $288,150
20.600 State and Community Highway Safety $2,145