Finding 1094109 (2024-001)

Significant Deficiency
Requirement
ABCEHLM
Questioned Costs
-
Year
2024
Accepted
2025-01-03

AI Summary

  • Core Issue: There is a significant deficiency in internal controls due to inadequate segregation of duties, leading to potential errors or fraud.
  • Impacted Requirements: The failure to consistently follow review and approval processes affects the accuracy of financial statements and the organization's ability to catch mistakes.
  • Recommended Follow-Up: Review and document internal control procedures to ensure compliance, including requiring signatures from multiple individuals for transaction approvals.

Finding Text

Significant Deficiency Criteria – Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the organization’s financial statements. Conditions – The external auditor could not verify who reviewed or who approved certain transactions. Cause – The implemented formal review and approval process sometimes was not followed. Effect – Not consistently adhering to review and approval processes could impact the Organization’s ability to promptly identify and address potential misstatements, or errors that may arise during the course of regular operations. Repeat Finding – This was partially corrected. See finding 2023-001. Recommendation – The Organization should review its procedures to address significant oversights in internal controls and ensure all internal control processes are properly documented. When the Organization has a process to cross-check among two or more individuals, it should be properly documented by having the initial or signature of the 2nd individual.

Categories

Internal Control / Segregation of Duties Significant Deficiency

Other Findings in this Audit

  • 517665 2024-001
    Significant Deficiency
  • 517666 2024-002
    Significant Deficiency
  • 517667 2024-001
    Significant Deficiency
  • 517668 2024-002
    Significant Deficiency
  • 1094107 2024-001
    Significant Deficiency
  • 1094108 2024-002
    Significant Deficiency
  • 1094110 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.576 Economic Empowerment $385,301
93.576 Refugee Career Pathways $235,492
93.576 Refugee Employer Engagement $213,212
93.576 Ukrainian Integration Program $185,412
93.566 Refugee Support Services $139,057
93.576 Refugee and Entrant Assistance $119,580
93.566 Refugee Heatlh Promotion $110,498
93.566 Family Violence Prevention & Services $101,288