Finding 366884 (2023-001)

Material Weakness Repeat Finding

Requirement

ABCEL

Questioned Costs

Year

2023

Accepted

2024-02-12

Audit: 290026

Organization: Iowa Foundaiton for Microenterprise and Community Vitality (IA)

Auditor: Houston & Seeman PC

AI Summary

Core Issue: Lack of proper segregation of duties in accounting due to a limited number of staff handling multiple responsibilities.
Impacted Requirements: Internal controls are weakened, increasing the risk of errors or fraud.
Recommended Follow-Up: Consider cross-training staff or hiring additional personnel to ensure duties are appropriately segregated.

Finding Text

Segregation of Duties – One important aspect of internal control is the segregation of duties among employees to prevent an individual employee from handling duties which are incompatible. The Iowa Foundation for Microenterprise and Community Vitality has a limited number of people which have the primary responsibility for most of the accounting and financial duties, as a result some of the aspects of internal control are missing.

Corrective Action Plan

Continue to review control procedures to obtain the maximum internal control possible under the existing circumstances.

Other Findings in this Audit

943326 2023-001

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
59.046	Microloan Program	$617,822
10.334	Enhancing Agricultural Opportunities for Military Veterans Competitive Grants Program	$202,550