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.
Categories
HUD Housing ProgramsSignificant DeficiencyInternal Control / Segregation of Duties