Finding 1172321 (2024-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2026-02-03

AI Summary

  • Core Issue: There is a lack of segregation of duties in financial accounting and reporting, increasing the risk of errors or fraud.
  • Impacted Requirements: The absence of controls means there are no effective measures to prevent and detect misstatements in financial records.
  • Recommended Follow-Up: Enhance Board oversight and consider implementing more formal accounting controls to reduce reliance on external auditor assistance.

Finding Text

Lack of Segregation of Duties in Financial Accounting and Reporting. The organization has limited segregation of duties as they relate to the accounting function for the entity. As usch, there are no controls to prevent and detect misstatements in this area. This type of item is typical of small entities, where the accounting staff is not large enough to establish sophisticated accounting controls. The entity's internal accounting control is informal. This results in a situation where additional auditor assistance is needed in the form of year-end financial statement preparation. The organization is encouraged to continue Board of Director involvement and oversight as well.

Corrective Action Plan

Due to limited staff size, we do not have adequate segregation of duties in the aeras of financial accounting and reporting as recommended for organizations. We have outsourced a 3rd party bookkeeping firm who provides payroll and payroll tax services and oversight of other various accounting matters as needed. The accounting staff that we do have (one person), is working to minimize the increased work at year-end by improving internal accounting systems with more efficiency and greater consistency. We believe this will help.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 1172322 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $1.01M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $239,584