Finding 606048 (2022-002)

FINDINGS ? FINANCIAL STATEMENT AUDIT 2022-001: Segregation of Duties (Material Weakness) Condition: A fundamental concept of internal controls is the separation of duties. No one employee should have access to both physical assets and the related accounting records, or to all phases of a transaction. A proper segregation of duties has not been established in functions related to payroll, accounts payable, accounts receivable, cash disbursements, and financial reporting. This exposes the County and School Board to a heightened risk of misappropriation. Recommendation: Steps should be taken to eliminate performance of conflicting duties, where possible, or to implement effective compensating controls. Management?s Response: Management concurs. The County and School Board have taken all steps deemed practical and cost beneficial to minimize conflicting duties. C. FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT 2022-002: SNAP Cluster ? State Administrative Matching Grants for the Supplemental Nutrition Assistant Program ? ALN #10.561, Eligibility Condition: Social Services did not verify the social security number for a household member in one out of twenty five applications selected for testing which were used to determine eligibility and benefit levels. Criteria: Under the requirements in the Uniform Guidance, social security numbers for all household members are required to be verified when applying for SNAP benefits. Cause: Social Services typically verifies all social security numbers for all household members included in the application for benefits, however, one household member was overlooked during the verification process. Effect: The lack of proper social security number verification could result in improper use of Federal funds on an ineligible individual. Perspective Information: One individual was not verified on one application out of twenty-five household applications selected. Recommendation: Management should implement a procedure to ensure that social security numbers for all household members are properly verified. Views of Responsible Officials and Planned Corrective Action: Social Services will put into place a procedure to ensure that all social security numbers are verified during the eligibility determination process.