Core Issue: There is a lack of segregation of accounting duties, allowing individuals access to both physical assets and accounting records.
Impacted Requirements: This situation increases the risk of mishandled transactions and violates the principle that duties should be segregated for proper oversight.
Recommended Follow-Up: Implement duty segregation where possible and ensure the Board of Directors is actively involved in financial oversight.
Finding Text
SIGNIFICANT DEFICIENCY; 2022-001; CONDITION: THERE IS A LACK OF SEGRETATION OF ACCOUNTING DUTIES THAT ENABLES THE SAME INDIVIDUALS TO HAVE ACCESS TO BOTH PHYSICAL ASSETS AND THE RELATED ACCOUNTING RECORDS OR TO ALL PHASES OF A TRANSACTION; EFFECT: TRANSACTIONS COULD BE MISHANDLED; CRITERIA: DUTIES SHOULD BE SEGREGATED TO PROVIDE REASONABLE ASSURANCE THAT THE TRANSACTIONS ARE HANDLED APPROPRIATELY; CAUSE: THERE ARE A LIMITED NUMBER OF PERSONNEL FOR CERTAIN FUNCTIONS; IDENTIFICATION OF A REPORTING FIND: THIS IS A REPEAT FINDING FROM THE IMMEDIATE PREVIOUS AUDIT; RECOMMENDATION: DUTIES SHOULD BE SEGREGATED TO THE EXTENT POSSIBLE. THE BOARD OF DIRECTORS MUST REMAIN INVOLVED IN THE FINANCIAL AFFAIRS OF THE NETWORK TO PROVIDE OVERSIGHT AND INDEPENDENT REVIEW FUNCTIONS; VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTIONS: THE NETWORK AGREES WITH THIS FINDING AND WILL ADHERE TO THE CORRECTIVE ACTION PLAN IN THIS REPORT.
Corrective Action Plan
THE DUTIES WILL BE SEGREGATED AS MUCH AS POSSIBLE AND THE BOARD OF DIRECTORS WILL REMAIN INVOLVED IN THE FINANCIAL AFFAIRS OF THE COMPANY TO PROVIDE OVERSIGHT AND INDEPENDENT REVIEW FUNCTIONS.
Categories
HUD Housing ProgramsReportingSignificant DeficiencyInternal Control / Segregation of Duties