Finding 32930 (2022-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-05-08
Audit: 33391
Auditor: Bergankdv

AI Summary

  • Core Issue: One person controls most accounting and financial systems, increasing the risk of undetected errors.
  • Impacted Requirements: The organization lacks proper segregation of duties, which is essential for effective internal controls.
  • Recommended Follow-Up: Evaluate the cost-benefit of hiring additional staff to improve duty segregation and continue reviewing accounting policies.

Finding Text

Lack of Segregation of Duties Criteria: An organization should have an internal control system that limits any single individual from having control over two or more phases of a financial transaction or operation. Condition: One person has the responsibility and access to the majority of the accounting and financial systems. Cause: The executive director has the responsibility and access to the majority of the accounting and financial systems. Effect: There is an increased likelihood that that misstatements may occur and not be detected by the organization?s system of internal control. Repeat Finding: This is a repeat finding, see finding 2021-001 in the prior year report. Recommendation: We commend management for updating the Accounting Policies and Procedures Manual and identifying additional ways to segregate duties as much as possible, however, with a small staff, segregation of all duties may not be possible and the organization should analyze the cost benefit of adding an additional staff member. Responsible Official?s Response: Hired a new staff member to assist with the accounting duties. With the new role we will be reviewing accounting policies to further improve the segregation of duties.

Corrective Action Plan

Our auditors identified that the organization does not have adequate segregation of duties. Responsible Individual: Jami Haberl, Executive Director Corrective Action Plan: Hired a new staff member to assist with the accounting duties. With the new role we will be reviewing accounting policies to further improve the segregation of duties. Anticipated Date of Completion: May 1, 2023

Categories

Internal Control / Segregation of Duties HUD Housing Programs

Other Findings in this Audit

  • 32931 2022-002
    Significant Deficiency Repeat
  • 609372 2022-001
    Significant Deficiency Repeat
  • 609373 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.019 Coronavirus Relief Fund $995,886
10.331 Food Insecurity Nutrition Incentive Grants Program $498,569
93.558 Temporary Assistance for Needy Families $182,418
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $80,000
10.170 Specialty Crop Block Grant Program - Farm Bill $16,139
21.027 Coronavirus State and Local Fiscal Recovery Funds $1,801