Finding 3952 (2022-002)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-12-12

AI Summary

  • Core Issue: There is a lack of adequate segregation of duties in accounting and financial tasks, compromising internal controls.
  • Impacted Requirements: Key internal control procedures are ineffective due to incompatible functions being performed by the same employees.
  • Recommended Follow-Up: Explore options for improving segregation of duties, such as reallocating resources or finding cost-effective solutions, until additional staff can be hired.

Finding Text

An adequate segregation of duties was not present related to the accounting and financial duties. As a result, many of those aspects of internal control procedures which rely upon an adequate segregation of duties are, for all practical purposes, missing. An adequate segregation of duties is a key component of accounting internal control. The operating budget for an organization the size of the Authority does not allow for the hiring of additional accounting personnel to further segregate incompatible accounting duties. Employees of the Authority perform incompatible functions with regards to accounting duties in relation to internal control. Unless and until the Authority can hire additional accounting staff to adequately segregate the accounting duties, this deficiency will be reported as a finding. The Authority has determined that the operating budget cannot handle the additional expense of hiring additional accounting personnel.

Corrective Action Plan

The corrective action plan was documented in our response to the auditor's comment. See the Schedule of Findings and Questioned Costs.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 3951 2022-001
    Significant Deficiency Repeat
  • 580393 2022-001
    Significant Deficiency Repeat
  • 580394 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers Program $790,006