Finding 384830 (2023-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-03-26

AI Summary

  • Core Issue: WAID's accounting department lacks adequate segregation of duties, increasing the risk of undetected errors.
  • Impacted Requirements: This finding is a repeat from the June 30, 2021 audit, indicating ongoing compliance issues.
  • Recommended Follow-Up: Implement compensating controls to address the segregation issue and monitor progress on the corrective action plan.

Finding Text

2023-001 Segregation of Duties Criteria: There should be adequate segregation of duties within the entity's accounting department to ensure effective internal control. Condition: There is a lack of segregation within Williamsburg Area Improved Dwellings, Inc.'s ("WAID") accounting department. Effect: Errors or misstatements may not be detected. Cause: WAID only has one staff person in its accounting department. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: Implementation of compensating controls to mitigate the lack of segregation. Management's Response: WAID agrees with this finding and will adhere to the corrective action plan detailed in the following section.

Corrective Action Plan

Compensating controls are believed to be in place to effectively mitigate risks involved with cash disbursements. WAID will also consider compensating controls to effectively mitigate the risks surrounding cash receipts and cash management. These controls will include: • The review and reconciliation of monthly cash receipts to the bank statements by a member of the Board.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 384831 2023-002
    Significant Deficiency Repeat
  • 384832 2023-003
    Significant Deficiency Repeat
  • 384833 2023-001
    Significant Deficiency Repeat
  • 384834 2023-002
    Significant Deficiency Repeat
  • 384835 2023-003
    Significant Deficiency Repeat
  • 961272 2023-001
    Significant Deficiency Repeat
  • 961273 2023-002
    Significant Deficiency Repeat
  • 961274 2023-003
    Significant Deficiency Repeat
  • 961275 2023-001
    Significant Deficiency Repeat
  • 961276 2023-002
    Significant Deficiency Repeat
  • 961277 2023-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.415 Rural Rental Housing Loans $1.38M
10.427 Rural Rental Assistance Payments $250,572