Finding 613900 (2022-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-06-18
Audit: 28903
Organization: Sistercare, INC (SC)

AI Summary

  • Core Issue: There is a significant lack of segregation in accounting duties, allowing individuals access to both physical assets and accounting records.
  • Impacted Requirements: Proper segregation of duties is necessary to ensure transactions are handled appropriately and to prevent mishandling.
  • Recommended Follow-Up: Implement segregation of duties where possible and ensure the Board of Directors is actively involved in financial oversight.

Finding Text

SIGNIFICANT DEFICIENCY. 2022-001. CONDITION: THERE IS A LACK OF SEGREGATION OF ACCOUNTING DUTIES THAT ENABLES THE SAME INDIVIDUALS TO HAVE ACCESS TO BOTH PHYSICAL ASSETS AND THE RELATED ACCOUNTING RECORDS OR TO ALL PHASES OF A TRANSACTION. EFFECT: TRANSACTIONS COULD BE MISHANDLED. CRITERIA: DUTIES SHOULD BE SEGREGATED TO PROVIDE REASONABLE ASSURANCE THAT TRANSACTIONS ARE HANDLED APPROPRIATELY. CAUSE: THERE ARE A LIMITED NUMBER OF PERSONNEL FOR CERTAIN FUNCTIONS. INDENTIFICATION OF A REPORT FINDING: THIS IS A REPEAT FUNDING FROM THE IMMEDIATE PREVIOUS AUDIT, 2021-001. RECOMMENDATION: DUTIES SHOULD BE SEGREGATED TO THE EXTENT POSSIBLE. THE BOARD OF DIRECTORS MUST REMAIN INVOLVED IN THE FINANCIAL AFFAIRS OF THE ORGANIZATION TO PROVIDE OVERSIGHT AND INDEPENDENT REVIEW FUNCTIONS. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: THE ORGANIZATION AGREES WITH THIS FINDING AND WILL ADHERE TO THE CORRECTIVE ACTION PLAN IN THIS REPORT.

Categories

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 37458 2022-001
    Significant Deficiency Repeat
  • 37459 2022-001
    Significant Deficiency Repeat
  • 613901 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
16.575 Crime Victim Assistance $224,959
14.267 Continuum of Care Program $165,560
14.231 Emergency Solutions Grant Program $63,979
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $51,477
16.736 Transitional Housing Assistance for Victims of Domestic Violence, Dating Violence, Stalking, Or Sexual Assault $32,378
93.558 Temporary Assistance for Needy Families $25,752
97.024 Emergency Food and Shelter National Board Program $8,000
16.588 Violence Against Women Formula Grants $7,991