FAC Explorer

Finding 406491 (2023-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-07-03
Audit: 311668
Organization: Access to Independence of San Diego, Inc. (CA)
Auditor: West Rhode and Roberts

AI Summary

  • Core Issue: Employees are handling multiple phases of transactions, violating segregation of duties.
  • Impacted Requirements: Payroll change reports are not reviewed by an independent party, compromising oversight.
  • Recommended Follow-up: Consider restructuring accounting roles or hiring additional staff to ensure proper segregation of duties.

Finding Text

Program: All programs Criteria or Specific Requirement: No one employee should have access to multiple phases of a transaction. Payroll change reports should be reviewed by someone other than the employee preparing them. Condition: Due to the size of the staff, certain accounting functions are performed by the person who initiates the transactions. This results in a lack of segregation of accounting function responsibilities. Cause: The Organization’s accounting department is small which resulted in too many accounting functions with two staff persons. Effect: The lack of segregation of duties increases the possibility that a material misstatement in the entity’s financial statements will not be prevented or detected and corrected on a timely basis. Questioned Costs: There were no questioned costs.

Corrective Action Plan

We acknowledge the challenges that come with maintaining appropriate segregation of duties in a small accounting department and have implemented a new control measure to effectively mitigate the risks involved. Moving forward, the Executive Director will receive a copy of the payroll change report after each payroll where a change has occurred. The Executive Director will thoroughly review the report and any supporting documentation and initial it. The report will then be filed with the corresponding pay period's payroll journal entry. Additionally, the Executive Director has full access to view all historical payroll change reports within the payroll system.

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 406492 2023-001
    Significant Deficiency
  • 406493 2023-001
    Significant Deficiency
  • 406494 2023-001
    Significant Deficiency
  • 406495 2023-001
    Significant Deficiency
  • 406496 2023-001
    Significant Deficiency
  • 406497 2023-001
    Significant Deficiency
  • 406498 2023-001
    Significant Deficiency
  • 406499 2023-001
    Significant Deficiency
  • 982933 2023-001
    Significant Deficiency
  • 982934 2023-001
    Significant Deficiency
  • 982935 2023-001
    Significant Deficiency
  • 982936 2023-001
    Significant Deficiency
  • 982937 2023-001
    Significant Deficiency
  • 982938 2023-001
    Significant Deficiency
  • 982939 2023-001
    Significant Deficiency
  • 982940 2023-001
    Significant Deficiency
  • 982941 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.432 Acl Centers for Independent Living $549,556
96.U00 Ssdi Reimbursement (ab204) $540,872
93.369 Acl Independent Living State Grants $70,098
96.U00 Ssdi Reimbursement (ab204-At) $67,019
84.169A Independent Living_state Grants $43,301
84.177 Rehabilitation Services_independent Living Services for Older Individuals Who Are Blind $42,569