Finding 502713 (2024-001)

Material Weakness Repeat Finding

Requirement

CEGHLM

Questioned Costs

Year

2024

Accepted

2024-10-15

Audit: 324780

Organization: Blair County Community Action Program (PA)

Auditor: Young Oakes Brown & Company PC

AI Summary

Core Issue: The finance director handles nearly all cash transactions, leading to a lack of checks and balances.
Impacted Requirements: There should be a clear segregation of duties for cash handling and restricted access to OuickBooks.
Recommended Follow-Up: Implement procedures to involve additional staff in cash processes and limit OuickBooks access to only the finance director.

Finding Text

Condition The finance director is involved with almost every step of cash receipt and cash disbursement transactions. Criteria There should be a segregation of duties related to cash receipt and cash disbursement transactions. The access to OuickBooks should be limited to the finance director. Cause There is a small office staff with a limited ability to have segregation of duties and more than one individual had access to the OuickBooks accounting software using the same password. Effect There is a weakness in internal control over cash receipts and cash disbursements when there is a lack of segregation of duties and more than one individual has access to the OuickBooks accounting software using the same password. Recommendation We recommend that procedures be put in place so that more than the finance director is involved in the cash receipt and disbursement process. Also, we recommend that only the finance director have access to OuickBooks. -

Corrective Action Plan

Corrective Action Measures were put into place to correct his mid fiscal year. The processes are as follows: Cash/checks coming into the agency go to the receptionist first who prepares a receipt, then to Amy to create the deposit slip and enter them into QuickBooks, then Jodi takes everything to the bank. For disbursemetns, Jodi approves/codes the inoices not coming from Weatherization, Mark approves invoices for Weatherization, Amy enters and prints the checks from QuickBooks, then Lisa and Jodi sign the checks. Agency Response Does the agency agree with the finding? -x-Yes --No Additional Comments N/A Agency Contact Responsible for Correction Action Name: Lisa Hann - Board President Address: 2301 Beale Ave Altoona, PA 16601 Phone Number: (814) 944-3583 Email: Ihann@familyservicesinc.net

Other Findings in this Audit

502714 2024-002

Significant Deficiency
1079155 2024-001

Material Weakness Repeat
1079156 2024-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
93.568	Low-Income Home Energy Assistance	$1.85M
14.267	Continuum of Care Program	$591,173
81.042	Weatherization Assistance for Low-Income Persons	$557,452
93.569	Community Services Block Grant	$301,887
14.231	Emergency Solutions Grant Program	$163,835