Finding 610301 (2022-003)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-05-17

AI Summary

  • Core Issue: Limited staff leads to inadequate segregation of duties in accounting, increasing risk of errors or fraud.
  • Impacted Requirements: Internal controls are not fully compliant with ideal standards due to overlapping responsibilities.
  • Recommended Follow-Up: Maintain current review procedures and closely monitor segregation of duties despite staffing limitations.

Finding Text

2022-003: Segregation of Duties Condition: A good system of internal accounting control requires a proper segregation of duties to prevent one person from being in a position to authorize, execute and record the same transaction. Criteria and Cause: Due to having a limited number of employees to handle all accounting functions, some duties and functions performed are contrary to ideal control procedures. Effect: We understand that the Organizations have segregated duties to the degree possible, including implementing monthly review procedures and additional oversight by the Executive Director and Board of Directors, and that management feels further segregation of duties is not practical with the limited number of people employed by management. Recommendation: We recommend that the review procedures implemented by the Executive Director and Board of Directors continue and that segregation of duties continue to be closely monitored. It is our understanding that efforts have been made to segregate duties to the degree possible and that further segregation of duties is not possible with the limited number of people utilized in the accounting function of the Organization.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 33859 2022-003
    Material Weakness
  • 33860 2022-004
    Material Weakness
  • 610302 2022-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $787,756
10.558 Child and Adult Care Food Program $35,940
93.575 Child Care and Development Block Grant $10,000