Finding Text
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
Assistance Listing Number(s): 93.044, 93.045, and 93.053
2022-001: Segregation of Duties
Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately.
Condition: Key duties and functions are not segregated among Corporation personnel. This is especially a concern in the cash management, accounts receivable, accounts payable, and payroll functions.
Effect: Transactions could be mishandled due to errors or fraud that could lead to loss of assets or the reporting of misleading financial information.
Cause: There are a limited number of personnel for certain functions and lack of board oversight.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 33 in this audit report.