Finding 31182 (2022-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-01-03

AI Summary

  • Core Issue: There is a material weakness in internal controls due to insufficient segregation of duties in the accounting function.
  • Impacted Requirements: Proper segregation of duties is essential for strong internal controls and should be implemented whenever feasible.
  • Recommended Follow-Up: Consider hiring additional personnel to improve segregation of duties, although this may not be practical given current staffing levels.

Finding Text

Type of Finding: Material Weakness in Internal Control over Compliance. Condition: There is not an ideal segregation of duties among personnel involved in the accounting function. A lack of proper segregation of duties could allow errors or irregularities to occur and go undetected. This condition is inherent in operations which, for sound economic conditions, must function with a small number of office personnel, and correction of this condition would require the employment of additional office personnel. Consequently, corrective action may not be practical. Criteria or Specific Requirement: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented if possible. Cause: There are a small number of personnel to whom to allocate responsibilities in accounting functions. Effect: A lack of segregation of duties increase the risk that errors may occur and not be prevented or detected on a timely basis. Repeat Finding: Yes, Prior year finding 2021-001.

Corrective Action Plan

Views of responsible officials and planned corrective actions: We agree and will continue to monitor monthly financial results and accounting information as correction is not practical.

Categories

Internal Control / Segregation of Duties Material Weakness

Other Findings in this Audit

  • 31237 2022-003
    Material Weakness
  • 31238 2022-001
    Material Weakness
  • 31239 2022-003
    -
  • 607624 2022-001
    Material Weakness Repeat
  • 607679 2022-003
    Material Weakness
  • 607680 2022-001
    Material Weakness
  • 607681 2022-003
    -

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $4.63M
14.195 Section 8 Housing Assistance Payments Program $991,678