Finding Text
Rural Rental Housing Loan Program Cluster: Rural Rental Housing Loans, AL #10.415 – Year ended August 31, 2025 Rural Rental Assistance Payments, AL #10.427 – Year ended August 31, 2025 Project Based Rental Assistance Program, AL #14.195 – Year ended August 31, 2025 Condition: Due to the size of the organization, there are not enough employees to adequately segregate incompatible duties. Criteria: No individual should have access to the performing, recording and reconciling of any one type of transaction. Cause: Organizational limitations do not allow the hiring of additional employees. Effect: Because of the lack of segregation of duties, it is possible for an employee to misappropriate funds and conceal the transaction. Context: All loans and rental assistance payments in this cluster were selected for audit testing. Auditor’s Recommendation: Because it is neither practical nor cost-efficient to have additional employees, the Board should continue to approve expenditures, sign checks, and periodically review the financial statements. This is a repeat finding. Views of Responsible Officials: We concur with the recommendation.