Finding 611134 (2022-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-03-30

AI Summary

  • Core Issue: Inadequate separation of duties for cash disbursements increases the risk of misappropriation.
  • Impacted Requirements: Internal controls must ensure duties are segregated among multiple individuals.
  • Recommended Follow-Up: The Board should implement procedures to improve segregation of duties in cash disbursements.

Finding Text

FINDINGS ? FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS 2022-01 - Disbursements Condition: There is not adequate separation of duties between approving, initiating, and recording cash disbursements. Criteria: Internal controls should be in place to adequately segregate duties between two or more individuals. Cause of Condition: The Organization has not utilized staff and/or board members to separate duties. Effect of Condition: The lack of segregation of duties increases the risk that funds could be misappropriated and that misappropriation would not be identified quickly. Recommendation: We recommend that the Board establish adequate segregation of duties over cash disbursements. Views of Responsible Officials and Planned Corrective Actions: The Board will discuss these recommendations and consider implementing procedures to further segregate duties within our internal control system. FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT 2022.01 - Community Facilities Loans CFDA #10.766 See Details Above

Categories

Internal Control / Segregation of Duties Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 34692 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $1.30M