Finding 537965 (2023-003)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2025-03-27

AI Summary

  • Answer: There is a significant risk due to insufficient separation of roles in handling manual journal entries.
  • Trend: This issue could lead to errors or fraud, as one person controls multiple critical steps.
  • List: Implement clear role divisions for creating, approving, and recording journal entries to enhance oversight.

Finding Text

There is a lack of segregation of duties surrounding the creation, approval and recording of manual journal entries.

Corrective Action Plan

Management acknowledges the audit finding and the risks associated with inadequate segregation of duties in the financial reporting process of the Convention Center District Authority venue. To mitigate this risk, management has implemented both interim and long-term corrective actions. As an interim measure, the Finance Director’s manual journal entries will be reviewed and approved by the Executive Director or another senior management member outside the finance function to ensure independent oversight. Additionally, the agency is actively recruiting an Accounting Manager to strengthen the financial team and establish proper segregation of duties, with the hiring process expected to be completed within six months. During this transition, an external accounting advisor will periodically review manual journal entries to ensure accuracy and compliance with financial reporting standards. The anticipated completion date for these corrective actions is fiscal year 2025.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 537963 2023-001
    Material Weakness
  • 537964 2023-002
    Material Weakness
  • 537966 2023-004
    -
  • 537967 2023-005
    Significant Deficiency
  • 537968 2023-006
    Significant Deficiency Repeat
  • 1114405 2023-001
    Material Weakness
  • 1114406 2023-002
    Material Weakness
  • 1114407 2023-003
    Material Weakness
  • 1114408 2023-004
    -
  • 1114409 2023-005
    Significant Deficiency
  • 1114410 2023-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $9.48M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $594,115