Finding 7708 (2023-001)

Supportive Housing for Persons with Disabilities (Section 811), Assistance Listing Number 14.181 Criteria: A good system of internal control contemplates an adequate segregation of duties so that no one individual handles a transaction from its inception to completion. Statement of Condition: The Organization has a lack of segregation of duties in certain areas due to a limited staff. Cause: There are a limited number of individuals involved in the internal control process. Effect: Inadequate segregation of duties could adversely affect the Organization’s ability to detect misstatements material to the financial statements in a timely manner by individuals in the normal course of performing their assigned functions. Recommendation: We recognize that it may not be cost effective for the Organization to hire additional staff. The Organization should continue to rely on compensating controls in place. Views of Responsible Officials: We agree with the finding. Due to cost restraints, the Organization will not hire any additional staff. The Organization will continue to rely on compensating controls in place.