Finding 581931 (2023-002)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2023-12-18

AI Summary

  • Core Issue: The Housing Authority lacks proper segregation of duties in accounting functions, increasing the risk of errors or fraud.
  • Impacted Requirements: Internal controls are insufficient, which may hinder timely detection of significant financial misstatements.
  • Recommended Follow-Up: Management should implement oversight procedures to enhance internal controls and monitor compliance as much as possible.

Finding Text

2023-002 - Segregation of Duties (design deficiency) Criteria: A good system of internal control provides for an adequate segregation of duties so that no one individual handles a transaction from its inception to completion. Condition: There is a lack of proper segregation of duties between the functions of record keeping, asset custody and authorization. Context: Due to the limited number of office personnel within the Housing Authority, segregation of the accounting functions necessary to ensure adequate internal accounting control is not possible. This is not unusual in operations the size of Housing Authority; however, the Housing Authority’s management should constantly be aware of this condition and realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable from an accounting point of view. Effect: Inadequate segregation of duties could adversely affect the Housing Authority’s ability to detect misstatements in amounts that would be material in relation to the financial statements in a timely period by employees in the normal course of performing their assigned functions. Cause: The Housing Authority does not have the economic resources needed to hire additional qualified accounting staff in order to properly segregate duties. Recommendation: We recommend that the Housing Authority’s board and management be aware of the lack of segregation of duties of the accounting functions and, where possible, implement oversight procedures to ensure that the internal control policies and procedures are being implemented by staff to the extent possible. Views of responsible officials and planned corrective actions: The Housing Authority will continue to segregate duties whenever possible and implement oversight procedures to ensure that the internal control policies and procedures are being implemented by staff to the extent possible.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 5483 2023-001
    Significant Deficiency Repeat
  • 5484 2023-001
    Significant Deficiency Repeat
  • 5485 2023-001
    Significant Deficiency Repeat
  • 5486 2023-001
    Significant Deficiency Repeat
  • 5487 2023-001
    Significant Deficiency Repeat
  • 5488 2023-002
    Significant Deficiency Repeat
  • 5489 2023-002
    Significant Deficiency Repeat
  • 5490 2023-002
    Significant Deficiency Repeat
  • 5491 2023-002
    Significant Deficiency Repeat
  • 5492 2023-002
    Significant Deficiency Repeat
  • 5493 2023-003
    Significant Deficiency Repeat
  • 581925 2023-001
    Significant Deficiency Repeat
  • 581926 2023-001
    Significant Deficiency Repeat
  • 581927 2023-001
    Significant Deficiency Repeat
  • 581928 2023-001
    Significant Deficiency Repeat
  • 581929 2023-001
    Significant Deficiency Repeat
  • 581930 2023-002
    Significant Deficiency Repeat
  • 581932 2023-002
    Significant Deficiency Repeat
  • 581933 2023-002
    Significant Deficiency Repeat
  • 581934 2023-002
    Significant Deficiency Repeat
  • 581935 2023-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.447 The Rural Development (rd) Multi-Family Housing Revitalization Demonstration Program (mpr) $3.09M
10.415 Rural Rental Housing Loans $1.55M
14.871 Section 8 Housing Choice Vouchers $756,504
10.427 Rural Rental Assistance Payments $263,662
14.182 Section 8 New Construction and Substantial Rehabilitation $138,385