Audit 32463

2022-003 SEGREGATION OF DUTIES Prior Year Finding Number 2021-003 Criteria Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the Organization?s financial statements. Condition For part of the fiscal year, we noted individuals have the ability to access cash receipts, prepare checks for mailing to vendors, record transactions to the Organization?s financial accounting system and complete bank reconciliations. In order to have proper segregation of duties no one individual should be performing all of these duties. Cause The Organization has a limited number of employees that possess the amount of financial knowledge necessary to perform the financial accounting duties of the Organization. Effect Inadequate segregation of duties could adversely affect the Organization?s ability to prevent or detect and correct misstatements, errors or misappropriation on a timely basis by employees in the normal course of performing their assigned functions. Recommendation The Organization should review its control activities to obtain the maximum internal control possible under the circumstances. The Organization should continue to utilize its accounting staff to assist with the financial accounting system entries and bank reconciliations. Monthly financial reports should be provided to the Finance Committee for review. Response The Organization has hired additional accounting staff to help mitigate risks posed due to the limited number of office employees able to segregate duties of accounting functions. Conclusion Response accepted.

2022-003 SEGREGATION OF DUTIES Prior Year Finding Number 2021-003 Criteria Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the Organization?s financial statements. Condition For part of the fiscal year, we noted individuals have the ability to access cash receipts, prepare checks for mailing to vendors, record transactions to the Organization?s financial accounting system and complete bank reconciliations. In order to have proper segregation of duties no one individual should be performing all of these duties. Cause The Organization has a limited number of employees that possess the amount of financial knowledge necessary to perform the financial accounting duties of the Organization. Effect Inadequate segregation of duties could adversely affect the Organization?s ability to prevent or detect and correct misstatements, errors or misappropriation on a timely basis by employees in the normal course of performing their assigned functions. Recommendation The Organization should review its control activities to obtain the maximum internal control possible under the circumstances. The Organization should continue to utilize its accounting staff to assist with the financial accounting system entries and bank reconciliations. Monthly financial reports should be provided to the Finance Committee for review. Response The Organization has hired additional accounting staff to help mitigate risks posed due to the limited number of office employees able to segregate duties of accounting functions. Conclusion Response accepted.

2022-003 SEGREGATION OF DUTIES Prior Year Finding Number 2021-003 Criteria Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the Organization?s financial statements. Condition For part of the fiscal year, we noted individuals have the ability to access cash receipts, prepare checks for mailing to vendors, record transactions to the Organization?s financial accounting system and complete bank reconciliations. In order to have proper segregation of duties no one individual should be performing all of these duties. Cause The Organization has a limited number of employees that possess the amount of financial knowledge necessary to perform the financial accounting duties of the Organization. Effect Inadequate segregation of duties could adversely affect the Organization?s ability to prevent or detect and correct misstatements, errors or misappropriation on a timely basis by employees in the normal course of performing their assigned functions. Recommendation The Organization should review its control activities to obtain the maximum internal control possible under the circumstances. The Organization should continue to utilize its accounting staff to assist with the financial accounting system entries and bank reconciliations. Monthly financial reports should be provided to the Finance Committee for review. Response The Organization has hired additional accounting staff to help mitigate risks posed due to the limited number of office employees able to segregate duties of accounting functions. Conclusion Response accepted.

2022-003 SEGREGATION OF DUTIES Prior Year Finding Number 2021-003 Criteria Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the Organization?s financial statements. Condition For part of the fiscal year, we noted individuals have the ability to access cash receipts, prepare checks for mailing to vendors, record transactions to the Organization?s financial accounting system and complete bank reconciliations. In order to have proper segregation of duties no one individual should be performing all of these duties. Cause The Organization has a limited number of employees that possess the amount of financial knowledge necessary to perform the financial accounting duties of the Organization. Effect Inadequate segregation of duties could adversely affect the Organization?s ability to prevent or detect and correct misstatements, errors or misappropriation on a timely basis by employees in the normal course of performing their assigned functions. Recommendation The Organization should review its control activities to obtain the maximum internal control possible under the circumstances. The Organization should continue to utilize its accounting staff to assist with the financial accounting system entries and bank reconciliations. Monthly financial reports should be provided to the Finance Committee for review. Response The Organization has hired additional accounting staff to help mitigate risks posed due to the limited number of office employees able to segregate duties of accounting functions. Conclusion Response accepted.