Finding 518859 (2024-002)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-01-12

AI Summary

  • Core Issue: An employee has full access to accounting software, can write checks, and is an authorized signor, which risks misuse of funds.
  • Impacted Requirements: Lack of separation of duties increases the chance of financial misstatements and potential loss of funds.
  • Recommended Follow-Up: Implement a clear separation of duties for writing checks, signing checks, and accessing accounting software to strengthen internal controls.

Finding Text

Federal Program: Federal Transit Cluster. Criteria: Separating the ability to write checks, sign checks, and full access to the accounting software decreases the risk of loss or misuse of the Authority's funds and increases the likelihood that misstatements would be prevented or detected and corrected on a timely basis. Condition: The Authority has an employee that has full access to the accounting software, can write checks, and is an authorized signor. Cause: The Authority has incurred turnover in management functions and limited number of employees were available to separate these duties. Effect: An incomplete separation of duties increases the risk of loss or misuse of the Authority's monies and increases the liklihood that misstatements would not be prevented or detected and corrected on a timely basis. Questioned Costs: None. Context: The finding is inr egards to the disbursement cycle. Cash disbursements for the fiscal year totaled $4,470,279. Repeat Finding: No. Recommendation: The Authority should separate an employee's ability to write checks, sign checks, and having full access to the accounting software. Views of Responsible Officials: The Authority agrees that separation of duties, within ability, is essential to robust fiscal internal controls. During the fiscal year the Authority experienced a turnover in administrative staff which resulted in a limited number of staff for a period to distribute duties, and there were limitations on the security functions o f the accounting software. . The Authority did maintain a separate individual, without signature authority, to perform bank reconciliations during this period. The Authority has updated the accounting software and reorganized the organization chart which will allow for enhanced controls.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 518855 2024-002
    Material Weakness
  • 518856 2024-002
    Material Weakness
  • 518857 2024-002
    Material Weakness
  • 518858 2024-002
    Material Weakness
  • 518860 2024-002
    Material Weakness
  • 518861 2024-002
    Material Weakness
  • 518862 2024-002
    Material Weakness
  • 518863 2024-002
    Material Weakness
  • 518864 2024-002
    Material Weakness
  • 518865 2024-002
    Material Weakness
  • 1095297 2024-002
    Material Weakness
  • 1095298 2024-002
    Material Weakness
  • 1095299 2024-002
    Material Weakness
  • 1095300 2024-002
    Material Weakness
  • 1095301 2024-002
    Material Weakness
  • 1095302 2024-002
    Material Weakness
  • 1095303 2024-002
    Material Weakness
  • 1095304 2024-002
    Material Weakness
  • 1095305 2024-002
    Material Weakness
  • 1095306 2024-002
    Material Weakness
  • 1095307 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $575,388
20.509 Formula Grants for Rural Areas and Tribal Transit Program $521,471
20.507 Federal Transit_formula Grants $518,853
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $144,434
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $16,883