Finding 401094 (2023-001)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2024-06-18
Audit: 309124
Organization: Milford Housing Authority (NE)
Auditor: Hbe LLP

AI Summary

  • Core Issue: The Authority lacks proper segregation of duties, increasing the risk of financial misstatements.
  • Impacted Requirements: Professional standards mandate written communication of significant deficiencies to management and governance.
  • Recommended Follow-Up: Management and the Board should enhance their oversight and review processes to address this internal control weakness.

Finding Text

Segregation of Duties Criteria: Professional standards require the communication, in writing, to management and those charged with governance, of significant deficiencies and material weaknesses identified in an audit. Condition: The Authority does not have appropriate segregation of duties. Cause: The Authority does not have appropriate segregation of duties due to the limited number of personnel. Effect or potential effect: The material weakness is a deficiency that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Authority’s internal control. Recommendation: The Milford Housing Authority’s management and Board of Commissioners must rely on its review and oversight authority to mitigate this inherent weakness in its internal control system. Views of responsible officials and Planned Corrective Actions: Milford Housing Authority’s management and Board of Commissioners will rely on its review and oversight authority to mitigate this inherent weakness in its internal control system.

Corrective Action Plan

Segregation of Duties: Corrective Action Planned: Milford Housing Authority’s management and Board of Commissioners will rely on its review and oversight authority to mitigate this inherent weakness in its internal control system. Anticipated Completion Date: Continuous. Responsible: Management and Board of Commissioners.

Categories

Internal Control / Segregation of Duties Material Weakness

Other Findings in this Audit

  • 401095 2023-002
    Material Weakness Repeat
  • 401096 2023-003
    Material Weakness Repeat
  • 401097 2023-004
    - Repeat
  • 977536 2023-001
    Material Weakness Repeat
  • 977537 2023-002
    Material Weakness Repeat
  • 977538 2023-003
    Material Weakness Repeat
  • 977539 2023-004
    - Repeat

Programs in Audit

ALN Program Name Expenditures
10.415 Rural Rental Housing Loans $1.12M
10.195 Section 8 Project $78,720
10.427 Rural Rental Assistance Payments $49,585