FAC Explorer

Finding 528133 (2024-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-03-14
Audit: 346200
Organization: Williamsburg Area Improved Dwellings, Inc. (PA)
Auditor: Fiore Fedeli Snyder Carthers LLP

AI Summary

  • Core Issue: WAID's accounting department lacks adequate segregation of duties, increasing the risk of undetected errors.
  • Impacted Requirements: This issue violates internal control standards, as it is a repeat finding from the previous audit.
  • Recommended Follow-Up: Implement compensating controls to address the segregation issue and monitor progress on the corrective action plan.

Finding Text

2024-001 Segregation of Duties Criteria: There should be adequate segregation of duties within the entity's accounting department to ensure effective internal control. Condition: There is a lack of segregation within Williamsburg Area Improved Dwellings, Inc.'s ("WAID") accounting department. Effect: Errors or misstatements may not be detected. Cause: WAID only has one staff person in its accounting department. Identification of a repeat finding: This is a repeat finding from the June 30, 2023 audit. Recommendation: Implementation of compensating controls to mitigate the lack of segregation. Management's Response: WAID agrees with this finding and will adhere to the corrective action plan detailed in the following section.

Corrective Action Plan

2024-001 Segregation of Duties Corrective Action Plan Compensating controls are believed to be in place to effectively mitigate risks involved with cash disbursements. WAID will also consider compensating controls to effectively mitigate the risks surrounding cash receipts and cash management. These controls will include: • The review and reconciliation of monthly cash receipts to the bank statements by a member of the Board. Responsible Party; Michelle Ross, Manager: (814) 832-3212 Anticipated Completion Date: Corrective Action Plan is in place but the mitigating control does not solve the segregation of duties issue. -

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 528134 2024-002
    Significant Deficiency Repeat
  • 528135 2024-001
    Significant Deficiency Repeat
  • 528136 2024-002
    Significant Deficiency Repeat
  • 1104575 2024-001
    Significant Deficiency Repeat
  • 1104576 2024-002
    Significant Deficiency Repeat
  • 1104577 2024-001
    Significant Deficiency Repeat
  • 1104578 2024-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.415 Rural Rental Housing Loans $1.34M
10.427 Rural Rental Assistance Payments $242,374