Finding 537632 (2024-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-03-27
Audit: 348911
Organization: Trinity Behavioral Care (SC)

AI Summary

  • Core Issue: The Agency lacks complete segregation of duties due to a small staff, increasing the risk of undetected errors or asset misappropriation.
  • Impacted Requirements: Internal control systems are not functioning ideally, as one person can handle transactions from start to finish.
  • Recommended Follow-Up: Implement supervisory reviews of financial statements and budget reports, and segregate duties where feasible to enhance oversight.

Finding Text

Due to a small staff size, the Agency does not have complete segregation of duties. The ideal internal control system would not allow one person to perform a transaction from beginning to end. There are insufficient personnel to properly segregate all financial functions of the Agency. An error in financial reporting may not be detected in a timely manner or the misappropriation of assets could be concealed. We recommend that the Board and management use supervisory reviews such as monitoring financial statements and budget reports, and segregate duties where cost beneficial to do so.

Corrective Action Plan

Management has and will continue to work diligently with our auditor to make every reasonable effort to resolve this issue. Due to the cost-benefits of eliminating this condition, segregation of duties may continue to be a reportable condition. Currently management performs reviews of all aspects of the finance department including every payroll, monthly review of all expenditures; and monthly review of all accounts received.

Categories

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 537633 2024-002
    Significant Deficiency Repeat
  • 537634 2024-001
    Significant Deficiency Repeat
  • 537635 2024-002
    Significant Deficiency Repeat
  • 1114074 2024-001
    Significant Deficiency Repeat
  • 1114075 2024-002
    Significant Deficiency Repeat
  • 1114076 2024-001
    Significant Deficiency Repeat
  • 1114077 2024-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.959 Block Grants for Prevention and Treatment of Substance Abuse $805,707
93.788 Opioid Str $778,937