FAC Explorer

Finding 1861 (2023-002)

Significant Deficiency
Requirement
ABFGIN
Questioned Costs
-
Year
2023
Accepted
2023-11-15
Audit: 3240
Organization: Blair County Community Action Program (PA)
Auditor: Young Oakes Brown & Company PC

AI Summary

  • Core Issue: The finance director is too involved in cash transactions, leading to a lack of proper checks and balances.
  • Impacted Requirements: There should be a clear segregation of duties for cash handling and restricted access to OuickBooks.
  • Recommended Follow-Up: Implement procedures to diversify cash transaction responsibilities and limit OuickBooks access to only the finance director.

Finding Text

Condition The finance director is involved with almost every step of cash receipt and cash disbursement transactions. Also, there is more than the finance director who has access to the OuickBooks using the same password. Criteria There should be a segregation of duties related to cash receipt and cash disbursement transactions. The access to OuickBooks should be limited to the finance director. Cause There is a small office staff with a limited ability to have segregation of duties and more than one individual had access to the OuickBooks accounting software using the same password. Effect There is a weakness in internal control over cash receipts and cash disbursements when there is a lack of segregation of duties and more than one individual has access to the OuickBooks accounting software using the same password. Recommendation We recommend that procedures be put in place so that more than the finance director is involved in the cash receipt and disbursement process. Also, we recommend that only the finance director have access to OuickBooks. -

Corrective Action Plan

Corrective Action Procedures be put in place so that more than the Finance Director is involved in the cash receipt and disbursement process. QuickBooks access is only to be the Finance Director. The Finance Operations Specialist and the Executive Assistant will be hired in order to establish a segregation of duties. The Finance Director will establish the duties and update the fiscal policies/procedures. The Board of Directors Finance Committee AND Executive Director will receive the segregation of duties and updated fiscal policies/procedures to approve prior to implementation. Completion Date 1/1/2024 Agency Response Does the agency agree with the finding? -x-Yes --No Additional Comments N/A Agency Contact Responsible for Correction Action Name: Lisa Hann - Board President Address: 2301 Beale Ave Altoona, PA 16601 Phone Number: (814) 944-3583 Email: Ihann@familyservicesinc.net

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1860 2023-001
    Material Weakness
  • 1862 2023-003
    Significant Deficiency
  • 1863 2023-001
    Material Weakness
  • 1864 2023-002
    Significant Deficiency
  • 578302 2023-001
    Material Weakness
  • 578303 2023-002
    Significant Deficiency
  • 578304 2023-003
    Significant Deficiency
  • 578305 2023-001
    Material Weakness
  • 578306 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.568 Low-Income Home Energy Assistance $1.57M
14.231 Emergency Solutions Grant Program $1.48M
14.267 Continuum of Care Program $477,827
93.569 Community Services Block Grant $450,713
21.027 Coronavirus State and Local Fiscal Recovery Funds $431,495
81.042 Weatherization Assistance for Low-Income Persons $311,937
14.218 Community Development Block Grants/entitlement Grants $199,178