FAC Explorer

Finding 370816 (2021-004)

Significant Deficiency
Requirement
ABC
Questioned Costs
-
Year
2021
Accepted
2024-02-27
Audit: 292503
Organization: Dallas County System of Services, Inc. (AL)
Auditor: Edwards and Wilkinson Cpa's

AI Summary

  • Core Issue: The organization lacks proper separation of duties due to a small staff, increasing the risk of errors and fraud.
  • Impacted Requirements: Essential criteria for financial integrity are not met, particularly in disbursements and payroll processes.
  • Recommended Follow-Up: Implement a clear division of responsibilities for transaction processes and ensure timely review of monthly reports.

Finding Text

Type of finding: Lack of separation of duties Condition- Given the Organizations small size and limited staff created challenges in achieving robust segregation of duties especially within the disbursements and payroll process. Criteria: Proper segregation of duties is essential for minimizing errors, preventing fraud, and maintaining financial integrity within the Organization. Cause: Limited number of staff Recommendation: The organization needs to spread the duties to best separate the duties of authorizing the transaction, from entering the transaction, from paying the transaction, from reconciling the transaction, from reporting the transaction. Planned Corrective Action The organization agrees with the finding and has hired a new employee to separate the payroll from the disbursement and to further separate the duties of authorization, from data entry, to payment, from reconciling, and will perform additional overriding controls for timely reviewing the monthly reports.

Corrective Action Plan

Description of Finding: Lack of separation of duties. The DCSOS is a small organization and during the 2021 audit year, had limited staff. This creates a challenge in achieving segregation of duties within the disbursements and payroll process. Statement of Concurrence or Nonconcurrence: Having a proper segregation of duties is essential for minimizing errors, preventing fraud, and maintaining financial integrity within the organization. Corrective Action: Separate duties between authorizing the transaction from entering the transaction, paying the transaction and from reconciling and reporting the transaction. DCSOS agrees with this and has hired a new employee to separate these duties. Proposed Completion Date: Immediate Person Responsible for Corrective Action: Financial Officer

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 370813 2021-001
    Significant Deficiency
  • 370814 2021-002
    Significant Deficiency
  • 370815 2021-003
    Significant Deficiency
  • 370817 2021-001
    Significant Deficiency
  • 370818 2021-002
    Significant Deficiency
  • 370819 2021-003
    Significant Deficiency
  • 370820 2021-004
    Significant Deficiency
  • 370821 2021-001
    Significant Deficiency
  • 370822 2021-002
    Significant Deficiency
  • 370823 2021-003
    Significant Deficiency
  • 370824 2021-004
    Significant Deficiency
  • 370825 2021-001
    Significant Deficiency
  • 370826 2021-002
    Significant Deficiency
  • 370827 2021-003
    Significant Deficiency
  • 370828 2021-004
    Significant Deficiency
  • 370829 2021-001
    Significant Deficiency
  • 370830 2021-002
    Significant Deficiency
  • 370831 2021-003
    Significant Deficiency
  • 370832 2021-004
    Significant Deficiency
  • 370833 2021-001
    Significant Deficiency
  • 370834 2021-002
    Significant Deficiency
  • 370835 2021-003
    Significant Deficiency
  • 370836 2021-004
    Significant Deficiency
  • 370837 2021-001
    Significant Deficiency
  • 370838 2021-002
    Significant Deficiency
  • 370839 2021-003
    Significant Deficiency
  • 370840 2021-004
    Significant Deficiency
  • 370841 2021-001
    Significant Deficiency
  • 370842 2021-002
    Significant Deficiency
  • 370843 2021-003
    Significant Deficiency
  • 370844 2021-004
    Significant Deficiency
  • 370845 2021-001
    Significant Deficiency
  • 370846 2021-002
    Significant Deficiency
  • 370847 2021-003
    Significant Deficiency
  • 370848 2021-004
    Significant Deficiency
  • 947255 2021-001
    Significant Deficiency
  • 947256 2021-002
    Significant Deficiency
  • 947257 2021-003
    Significant Deficiency
  • 947258 2021-004
    Significant Deficiency
  • 947259 2021-001
    Significant Deficiency
  • 947260 2021-002
    Significant Deficiency
  • 947261 2021-003
    Significant Deficiency
  • 947262 2021-004
    Significant Deficiency
  • 947263 2021-001
    Significant Deficiency
  • 947264 2021-002
    Significant Deficiency
  • 947265 2021-003
    Significant Deficiency
  • 947266 2021-004
    Significant Deficiency
  • 947267 2021-001
    Significant Deficiency
  • 947268 2021-002
    Significant Deficiency
  • 947269 2021-003
    Significant Deficiency
  • 947270 2021-004
    Significant Deficiency
  • 947271 2021-001
    Significant Deficiency
  • 947272 2021-002
    Significant Deficiency
  • 947273 2021-003
    Significant Deficiency
  • 947274 2021-004
    Significant Deficiency
  • 947275 2021-001
    Significant Deficiency
  • 947276 2021-002
    Significant Deficiency
  • 947277 2021-003
    Significant Deficiency
  • 947278 2021-004
    Significant Deficiency
  • 947279 2021-001
    Significant Deficiency
  • 947280 2021-002
    Significant Deficiency
  • 947281 2021-003
    Significant Deficiency
  • 947282 2021-004
    Significant Deficiency
  • 947283 2021-001
    Significant Deficiency
  • 947284 2021-002
    Significant Deficiency
  • 947285 2021-003
    Significant Deficiency
  • 947286 2021-004
    Significant Deficiency
  • 947287 2021-001
    Significant Deficiency
  • 947288 2021-002
    Significant Deficiency
  • 947289 2021-003
    Significant Deficiency
  • 947290 2021-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
17.259 Wia Youth Activities $205,225
17.258 Wia Adult Program $122,083
93.276 Drug-Free Communities Support Program Grants $121,715
16.540 Juvenile Justice and Delinquency Prevention_allocation to States $70,005
93.788 Opioid Str $46,453
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $35,622
93.558 Temporary Assistance for Needy Families $31,365