FAC Explorer

Finding 43713 (2022-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2022-12-04
Audit: 47840
Organization: Aiken County Commission on Alcohol and Drug Abuse (SC)
Auditor: McKinley Cooper & CO LLC

AI Summary

  • Core Issue: There is a significant deficiency in accounting practices due to a lack of segregation of duties, allowing individuals access to both assets and records.
  • Impacted Requirements: Proper segregation of duties is necessary to ensure transactions are handled appropriately and to prevent mishandling.
  • Recommended Follow-Up: Implement segregation of duties where possible and ensure the Board of Directors is actively involved in oversight and review of financial affairs.

Finding Text

SIGNIFICANT DEFICIENCY. 2022-001. CONDITION: THERE IS A LACK OF SEGREGATION OF ACCOUNTING DUTIES THAT ENABLES THE SAME INDIVIDUALS TO HAVE ACCESS TO BOTH PHYSICAL ASSETS AND THE RELATED ACCOUNTING RECORDS OR TO ALL PHASES OF A TRANSACTION. EFFECT: TRANSACTIONS COULD BE MISHANDLED. CRITERIA: DUTIES SHOULD BE SEGREGATED TO PROVIDE REASONABLE ASSURANCE THAT TRANSACTIONS ARE HANDLED APPROPRIATELY. CAUSE: THERE ARE A LIMITED NUMBER OF PERSONNEL FOR CERTAIN FUNCTIONS. RECOMMENDATION: DUTIES SHOULD BE SEGREGATED TO THE EXTENT POSSIBLE. THE BOARD OF DIRECTORS MUST REMAIN INVOLVED IN THE FINANCIAL AFFAIRS OF THE COMMISSION TO PROVIDE OVERSIGHT AND INDEPENDENT REVIEW FUNCTIONS. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: THE COMMISSION AGREES WITH THIS FINDING AND WILL ADHERE TO THE CORRECTIVE ACTION PLAN IN THIS REPORT.

Corrective Action Plan

SIFNIFICANT DEFICIENCY. 2022-001 SEGREGATION OF DUTIES. NAME OF CONTACT PERSON: JEFF MCLAIN, DIRECTOR OF FINANCE. CORRECTIVE ACTION: THE DUTIES WILL BE SEGREGATED AS MUCH AS POSSIBLE AND THE BOARD OF DIRECTORS WILL REMAIN INVOLVED IN REVIEWING THE FINANCIAL STATEMENTS OF THE COMMISSION. PROPOSED COMPLETION DATE: MANAGEMENT WILL IMPLEMENT THE ABOVE ACTION IMMEDIATELY.

Categories

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 43714 2022-001
    Significant Deficiency Repeat
  • 43715 2022-001
    Significant Deficiency Repeat
  • 620155 2022-001
    Significant Deficiency Repeat
  • 620156 2022-001
    Significant Deficiency Repeat
  • 620157 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.788 Opioid Str $248,846
93.959 Block Grants for Prevention and Treatment of Substance Abuse $216,546
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $24,527