Finding Text
2024-014 Segregation of Duties Material Weakness Condition: The Housing Authority has limited personnel responsible for most accounting functions. The Housing Authority has limited staff that includes one finance manager for the responsible to approve payments, issue checks, maintain the general ledger and prepare bank reconciliations. The finance manager is also check signer for the Housing Authority. Criteria: To ensure adequate internal controls over financial reporting and prevent material misstatements due to error or fraud, there should be segregation of the functions of approval, custody of assets, posting and reconciliations. Cause: The Housing Authority does not have a large enough staff to properly segregate all duties. Effect: A lack of segregation of duties leads to a limited degree on internal controls. Recommendation: We recommend that management and the governing board be aware of the lack of segregation of duties and implement controls whenever possible to mitigate this risk. The governing board should remove the finance manager from the list of check signers. Views of Responsible Officials: See Corrective Action Plan.