Finding Text
2023-001 – Lack of Segregation of Duties
Criteria: Internal control is a process, affected by the Housing Authority of the County of Juneau's (the Authority)
board of commissioners, management, and other personnel, designed to provide reasonable assurance regarding
the achievement of objectives in the following categories: effectiveness and efficiency of operations, reliability of
financial reporting, and compliance with applicable laws and regulations. A good system of internal control provides
for an adequate segregation of duties so that no one individual handles a transaction from its inception to
completion.
Condition: Due to the limited employees and resources available to the Authority, many aspects of the internal
control structure that rely on segregation of duties are missing. Specific accounting processes noted that are
affected by the lack of segregation of duties include: cash disbursements, payroll disbursements, cash receipting,
and specific reporting functions required for the Authority.
Cause: Due to the limited number of personnel within the Authority, segregation of the accounting functions
necessary to ensure adequate internal accounting control is not possible. This is not unusual in operations the size
of the Authority; however, management should constantly be aware of this condition and realize that the
concentration of duties and responsibilities in a limited number of individuals is not desirable from an accounting
point of view.
Effect: Inadequate segregation of duties could adversely affect the Authority’s ability to detect misstatements in
amounts that would be material in relation to the financial statements in a timely period by personnel in the normal
course of performing their assigned functions.
Recommendation: We recommend that the Authority’s board of commissioners and management be aware of the
lack of segregation of the accounting functions and, where possible, implement oversight procedures to ensure the
internal control policies and procedures are being implemented by personnel to the extent possible.
View of Responsible Officials: Management agrees with the finding.