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.
Categories
HUD Housing ProgramsReportingSignificant DeficiencyInternal Control / Segregation of Duties