Finding 1138149 (2023-001)

Significant Deficiency Repeat Finding
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2025-05-28

AI Summary

  • Core Issue: Limited segregation of duties in the disbursements cycle increases risk of errors and fraud.
  • Impacted Requirements: Adequate separation of functions is necessary for receipts, disbursements, and asset management.
  • Recommended Follow-Up: Implement clear divisions of responsibility among accounting staff to enhance internal controls.

Finding Text

Condition – During our audit we reviewed procedures over transaction cycles related to receipting, cash disbursements, utility billing, and payroll and found the Organization to have limited segregation of duties related to the disbursements cycle. Criteria – Adequate separation of duties calls for clear segregation of functions such as receipts, disbursements, recording, custody of assets, transaction authorization and performance monitoring. Cause – The accounting staff of the Organization maintain and control the check stock, prepares checks, records disbursements, prepares deposits and posts to general ledger.

Categories

Subrecipient Monitoring Internal Control / Segregation of Duties

Other Findings in this Audit

  • 561707 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $871,176