FAC Explorer

Finding 2669 (2022-001)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-11-29
Audit: 4488
Organization: My Project USA (OH)
Auditor: Brady Ware & Schoenfeld

AI Summary

  • Core Issue: The Organization has a significant lack of segregation of duties in handling cash receipts and disbursements.
  • Impacted Requirements: Proper segregation of duties is essential to prevent and detect errors in financial reporting.
  • Recommended Follow-Up: Assess internal controls and create a policy to ensure segregation of duties for cash transactions.

Finding Text

Finding 2022-001 - Lack of Segregation of Duties (Material Weakness on Internal Control over Financial Reporting) Condition: During our audit it was noted that the Organization lacks segregation of duties for cash receipts and disbursements. Criteria: The Organization should maintain proper segregation of duties in accounting to prevent and detect errors. Cause: The Organization has grown considerably over the past couple of years and has limited accounting staff. Effect: Increased possibility of undetected errors or irregularities. Recommendation: We recommend that the Organization assess the internal controls over cash receipts and disbursements and develop a policy of segregation of duties. Views of Responsible Officials and Corrective Action: See Corrective Action Plan.

Corrective Action Plan

Inadequate Segregation of Responsibilities – My Project USA has experienced significant growth within the organization in recent years, primarily driven by the increasing demand from the communities we serve. We recognized that there was a lack of clear segregation of duties in managing cash receipts and disbursements and therefore we established a collaborative approach to ensure secure handling of cash. The policy mandates multiple individuals' involvement in managing and accounting for cash transactions, including petty cash, program receipts, and change funds, to prevent concentration of financial control, with procedures for digital logging, weekly deposits, regular audits, and training. This collaborative system was put into place as of March 2023 to enhance accountability and security.

Categories

Internal Control / Segregation of Duties Material Weakness Reporting

Other Findings in this Audit

  • 2670 2022-002
    Significant Deficiency
  • 579111 2022-001
    Material Weakness
  • 579112 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $297,805
10.569 Emergency Food Assistance Program (food Commodities) $162,638
21.027 Coronavirus State and Local Fiscal Recovery Funds $50,000
93.558 Temporary Assistance for Needy Families $10,700