Finding 401155 (2023-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-06-18
Audit: 309200
Organization: Trellis Co. (MN)

AI Summary

  • Core Issue: There is a lack of segregation of duties in cash receipts, allowing one employee access to both physical checks and accounting records.
  • Impacted Requirements: Good internal control practices are not being followed, increasing the risk of undetected errors and potential asset misappropriation.
  • Recommended Follow-Up: Implement procedures to separate duties, and consider using the new check scanning machine to enhance controls.

Finding Text

FINDING 2023-001: Lack of Segregation of Duties – Cash Receipts Criteria - Good internal control requires a segregation of duties and responsibilities such that no one employee has access to both physical assets and the related accounting records, or to all phases of a transaction. Condition - The person performing accounting functions for the Corporation occasionally has access to physical checks. Context - Management is responsible for implementing controls to ensure adequate segregation of duties. Cause - The accountant records checks in the accounting system when they are received. Occasionally, the accountant will pick up checks from the management location and therefore, has access to both physical assets and the accounting records. Effect - The lack of segregation of duties may result in undetected errors in financial statements and increases the possibility of misappropriation of the Corporation’s assets. Recommendation - We recommend the Corporation establish procedures to adequately segregate duties so no one has access to both physical assets and the related accounting records. Auditee's comments and response - The small size of the Corporation’s staff makes it difficult to adequately segregate duties in some areas. The Corporation is acquiring a check scanning machine from their bank that will allow their administrative assistant to deposit the checks electronically as soon as they arrive in the mail. Responsible party for corrective action: Lisa Fischer – Chief Operating Officer

Categories

Internal Control / Segregation of Duties HUD Housing Programs

Other Findings in this Audit

  • 401148 2023-001
    Significant Deficiency
  • 401149 2023-001
    Significant Deficiency
  • 401150 2023-001
    Significant Deficiency
  • 401151 2023-001
    Significant Deficiency
  • 401152 2023-001
    Significant Deficiency
  • 401153 2023-001
    Significant Deficiency
  • 401154 2023-001
    Significant Deficiency
  • 401156 2023-001
    Significant Deficiency
  • 401157 2023-001
    Significant Deficiency
  • 401158 2023-001
    Significant Deficiency
  • 401159 2023-001
    Significant Deficiency
  • 401160 2023-001
    Significant Deficiency
  • 401161 2023-001
    Significant Deficiency
  • 401162 2023-002
    Significant Deficiency
  • 401163 2023-002
    Significant Deficiency
  • 401164 2023-002
    Significant Deficiency
  • 401165 2023-002
    Significant Deficiency
  • 401166 2023-002
    Significant Deficiency
  • 401167 2023-002
    Significant Deficiency
  • 401168 2023-002
    Significant Deficiency
  • 401169 2023-002
    Significant Deficiency
  • 401170 2023-002
    Significant Deficiency
  • 401171 2023-002
    Significant Deficiency
  • 401172 2023-002
    Significant Deficiency
  • 401173 2023-002
    Significant Deficiency
  • 401174 2023-002
    Significant Deficiency
  • 401175 2023-002
    Significant Deficiency
  • 401176 2023-003
    Significant Deficiency
  • 401177 2023-003
    Significant Deficiency
  • 401178 2023-003
    Significant Deficiency
  • 401179 2023-003
    Significant Deficiency
  • 401180 2023-003
    Significant Deficiency
  • 401181 2023-003
    Significant Deficiency
  • 977590 2023-001
    Significant Deficiency
  • 977591 2023-001
    Significant Deficiency
  • 977592 2023-001
    Significant Deficiency
  • 977593 2023-001
    Significant Deficiency
  • 977594 2023-001
    Significant Deficiency
  • 977595 2023-001
    Significant Deficiency
  • 977596 2023-001
    Significant Deficiency
  • 977597 2023-001
    Significant Deficiency
  • 977598 2023-001
    Significant Deficiency
  • 977599 2023-001
    Significant Deficiency
  • 977600 2023-001
    Significant Deficiency
  • 977601 2023-001
    Significant Deficiency
  • 977602 2023-001
    Significant Deficiency
  • 977603 2023-001
    Significant Deficiency
  • 977604 2023-002
    Significant Deficiency
  • 977605 2023-002
    Significant Deficiency
  • 977606 2023-002
    Significant Deficiency
  • 977607 2023-002
    Significant Deficiency
  • 977608 2023-002
    Significant Deficiency
  • 977609 2023-002
    Significant Deficiency
  • 977610 2023-002
    Significant Deficiency
  • 977611 2023-002
    Significant Deficiency
  • 977612 2023-002
    Significant Deficiency
  • 977613 2023-002
    Significant Deficiency
  • 977614 2023-002
    Significant Deficiency
  • 977615 2023-002
    Significant Deficiency
  • 977616 2023-002
    Significant Deficiency
  • 977617 2023-002
    Significant Deficiency
  • 977618 2023-003
    Significant Deficiency
  • 977619 2023-003
    Significant Deficiency
  • 977620 2023-003
    Significant Deficiency
  • 977621 2023-003
    Significant Deficiency
  • 977622 2023-003
    Significant Deficiency
  • 977623 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.135 Mortgage Insurance_rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate $3.66M
14.164 Operating Assistance for Troubled Multifamily Housing Projects $2.29M
10.415 Rural Rental Housing Loans $576,502
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $559,521
10.427 Rural Rental Assistance Payments $67,342
14.182 Section 8 New Construction and Substantial Rehabilitation $37,058
14.181 Supportive Housing for Persons with Disabilities $35,646
14.191 Multifamily Housing Service Coordinators $587