Segregation of Duties
Condition: The duties of preparing deposits, investigating discrepancies, maintaining
master files, maintaining the general ledger, making deposits, reconciling the bank accounts,
investigating problems with payables and resolving inquiries and editing the payroll master
file are concentrated in one person's duties. The duties of opening the mail, authorizing
write-offs, authorizing and signing checks and authorizing payroll are concentrated in
another person's duties. The duties of recording receipts, updating accounts and pledges
receivable, initiating checks for expenditure, updating accounts payable and preparing
checks are concentrated in another person's duties. The duties of recording receipts,
updating accounts and pledge receivable, initiating checks and updating accounts payable
are concentrated in another person's duties. The duties of preparing payroll and resolving
inquiries and editing payroll master file are concentrated in another person's duties.
Criteria: Internal controls should be in place that provide an adequate segregation of duties
that separates initiating, processing, recording and reconciling a transaction.
Cause: The size of the Organization's accounting staff precludes certain internal controls
that would be preferred if staff were large enough to provide optimum segregation of duties. Effect: Without a separation of duties, errors or irregularities can occur and not be
discovered in the normal course of business.
Recommendation: This deficiency is the result of the limited accounting staff of the
Organization. We recommend that the Board and CEO continue active involvement by
reviewing operating statements, comparisons to budget, receivables, receipts and
disbursements, to add to existing internal controls in the Organization.
Response: This will be reviewed and assessed to find where duties can be separated and
independently performed within staff.
Preparation of Financial Statements
Condition: Many of the Organizations' general ledger accounts were not in balance with
supporting details and were not reconciled throughout the year on a monthly basis.
Criteria: Financial Statement accounts should be reconciled on a monthly basis to ensure
proper financial reports.
Cause: Balancing of the financial statements was not kept up every month.
Effect: The financial statements looked at every month are not accurate and this could be
misleading.
Recommendation: We recommend that all financial statement accounts be reconciled on a
timely basis so that all financial reports being reviewed are accurate.
Response: Financial statements will be reconciled on a monthly basis and reviewed by the
board. Adjustments that need to be made will be made in a timely manner to ensure the
continued integrity of the financial statements.
Preparation of the SEFA
Condition: A SEFA was prepared by the Organization but there was changes that were made
during the audit to get to a complete and accurate SEFA.
Criteria: The SEFA should include all expenditures of federal awards.
Cause: The financials were not accurate and balanced throughout the year.
Effect: The SEFA prepared by the Organization did not include all federal expenses. Recommendation: We recommend that all federal awards be balanced on a monthly basis to
ensure the preparation of the SEFA is accurate.
Response: In addition to the above, project codes will be implemented in GL for all funds so
that all fund sources and expenses can be identified and reconciled monthly.
Segregation of Duties
Condition: The duties of preparing deposits, investigating discrepancies, maintaining
master files, maintaining the general ledger, making deposits, reconciling the bank accounts,
investigating problems with payables and resolving inquiries and editing the payroll master
file are concentrated in one person's duties. The duties of opening the mail, authorizing
write-offs, authorizing and signing checks and authorizing payroll are concentrated in
another person's duties. The duties of recording receipts, updating accounts and pledges
receivable, initiating checks for expenditure, updating accounts payable and preparing
checks are concentrated in another person's duties. The duties of recording receipts,
updating accounts and pledge receivable, initiating checks and updating accounts payable
are concentrated in another person's duties. The duties of preparing payroll and resolving
inquiries and editing payroll master file are concentrated in another person's duties.
Criteria: Internal controls should be in place that provide an adequate segregation of duties
that separates initiating, processing, recording and reconciling a transaction.
Cause: The size of the Organization's accounting staff precludes certain internal controls
that would be preferred if staff were large enough to provide optimum segregation of duties. Effect: Without a separation of duties, errors or irregularities can occur and not be
discovered in the normal course of business.
Recommendation: This deficiency is the result of the limited accounting staff of the
Organization. We recommend that the Board and CEO continue active involvement by
reviewing operating statements, comparisons to budget, receivables, receipts and
disbursements, to add to existing internal controls in the Organization.
Response: This will be reviewed and assessed to find where duties can be separated and
independently performed within staff.
Preparation of Financial Statements
Condition: Many of the Organizations' general ledger accounts were not in balance with
supporting details and were not reconciled throughout the year on a monthly basis.
Criteria: Financial Statement accounts should be reconciled on a monthly basis to ensure
proper financial reports.
Cause: Balancing of the financial statements was not kept up every month.
Effect: The financial statements looked at every month are not accurate and this could be
misleading.
Recommendation: We recommend that all financial statement accounts be reconciled on a
timely basis so that all financial reports being reviewed are accurate.
Response: Financial statements will be reconciled on a monthly basis and reviewed by the
board. Adjustments that need to be made will be made in a timely manner to ensure the
continued integrity of the financial statements.
Preparation of the SEFA
Condition: A SEFA was prepared by the Organization but there was changes that were made
during the audit to get to a complete and accurate SEFA.
Criteria: The SEFA should include all expenditures of federal awards.
Cause: The financials were not accurate and balanced throughout the year.
Effect: The SEFA prepared by the Organization did not include all federal expenses. Recommendation: We recommend that all federal awards be balanced on a monthly basis to
ensure the preparation of the SEFA is accurate.
Response: In addition to the above, project codes will be implemented in GL for all funds so
that all fund sources and expenses can be identified and reconciled monthly.
Segregation of Duties
Condition: The duties of preparing deposits, investigating discrepancies, maintaining
master files, maintaining the general ledger, making deposits, reconciling the bank accounts,
investigating problems with payables and resolving inquiries and editing the payroll master
file are concentrated in one person's duties. The duties of opening the mail, authorizing
write-offs, authorizing and signing checks and authorizing payroll are concentrated in
another person's duties. The duties of recording receipts, updating accounts and pledges
receivable, initiating checks for expenditure, updating accounts payable and preparing
checks are concentrated in another person's duties. The duties of recording receipts,
updating accounts and pledge receivable, initiating checks and updating accounts payable
are concentrated in another person's duties. The duties of preparing payroll and resolving
inquiries and editing payroll master file are concentrated in another person's duties.
Criteria: Internal controls should be in place that provide an adequate segregation of duties
that separates initiating, processing, recording and reconciling a transaction.
Cause: The size of the Organization's accounting staff precludes certain internal controls
that would be preferred if staff were large enough to provide optimum segregation of duties. Effect: Without a separation of duties, errors or irregularities can occur and not be
discovered in the normal course of business.
Recommendation: This deficiency is the result of the limited accounting staff of the
Organization. We recommend that the Board and CEO continue active involvement by
reviewing operating statements, comparisons to budget, receivables, receipts and
disbursements, to add to existing internal controls in the Organization.
Response: This will be reviewed and assessed to find where duties can be separated and
independently performed within staff.
Preparation of Financial Statements
Condition: Many of the Organizations' general ledger accounts were not in balance with
supporting details and were not reconciled throughout the year on a monthly basis.
Criteria: Financial Statement accounts should be reconciled on a monthly basis to ensure
proper financial reports.
Cause: Balancing of the financial statements was not kept up every month.
Effect: The financial statements looked at every month are not accurate and this could be
misleading.
Recommendation: We recommend that all financial statement accounts be reconciled on a
timely basis so that all financial reports being reviewed are accurate.
Response: Financial statements will be reconciled on a monthly basis and reviewed by the
board. Adjustments that need to be made will be made in a timely manner to ensure the
continued integrity of the financial statements.
Preparation of the SEFA
Condition: A SEFA was prepared by the Organization but there was changes that were made
during the audit to get to a complete and accurate SEFA.
Criteria: The SEFA should include all expenditures of federal awards.
Cause: The financials were not accurate and balanced throughout the year.
Effect: The SEFA prepared by the Organization did not include all federal expenses. Recommendation: We recommend that all federal awards be balanced on a monthly basis to
ensure the preparation of the SEFA is accurate.
Response: In addition to the above, project codes will be implemented in GL for all funds so
that all fund sources and expenses can be identified and reconciled monthly.
Segregation of Duties
Condition: The duties of preparing deposits, investigating discrepancies, maintaining
master files, maintaining the general ledger, making deposits, reconciling the bank accounts,
investigating problems with payables and resolving inquiries and editing the payroll master
file are concentrated in one person's duties. The duties of opening the mail, authorizing
write-offs, authorizing and signing checks and authorizing payroll are concentrated in
another person's duties. The duties of recording receipts, updating accounts and pledges
receivable, initiating checks for expenditure, updating accounts payable and preparing
checks are concentrated in another person's duties. The duties of recording receipts,
updating accounts and pledge receivable, initiating checks and updating accounts payable
are concentrated in another person's duties. The duties of preparing payroll and resolving
inquiries and editing payroll master file are concentrated in another person's duties.
Criteria: Internal controls should be in place that provide an adequate segregation of duties
that separates initiating, processing, recording and reconciling a transaction.
Cause: The size of the Organization's accounting staff precludes certain internal controls
that would be preferred if staff were large enough to provide optimum segregation of duties. Effect: Without a separation of duties, errors or irregularities can occur and not be
discovered in the normal course of business.
Recommendation: This deficiency is the result of the limited accounting staff of the
Organization. We recommend that the Board and CEO continue active involvement by
reviewing operating statements, comparisons to budget, receivables, receipts and
disbursements, to add to existing internal controls in the Organization.
Response: This will be reviewed and assessed to find where duties can be separated and
independently performed within staff.
Preparation of Financial Statements
Condition: Many of the Organizations' general ledger accounts were not in balance with
supporting details and were not reconciled throughout the year on a monthly basis.
Criteria: Financial Statement accounts should be reconciled on a monthly basis to ensure
proper financial reports.
Cause: Balancing of the financial statements was not kept up every month.
Effect: The financial statements looked at every month are not accurate and this could be
misleading.
Recommendation: We recommend that all financial statement accounts be reconciled on a
timely basis so that all financial reports being reviewed are accurate.
Response: Financial statements will be reconciled on a monthly basis and reviewed by the
board. Adjustments that need to be made will be made in a timely manner to ensure the
continued integrity of the financial statements.
Preparation of the SEFA
Condition: A SEFA was prepared by the Organization but there was changes that were made
during the audit to get to a complete and accurate SEFA.
Criteria: The SEFA should include all expenditures of federal awards.
Cause: The financials were not accurate and balanced throughout the year.
Effect: The SEFA prepared by the Organization did not include all federal expenses. Recommendation: We recommend that all federal awards be balanced on a monthly basis to
ensure the preparation of the SEFA is accurate.
Response: In addition to the above, project codes will be implemented in GL for all funds so
that all fund sources and expenses can be identified and reconciled monthly.
Segregation of Duties
Condition: The duties of preparing deposits, investigating discrepancies, maintaining
master files, maintaining the general ledger, making deposits, reconciling the bank accounts,
investigating problems with payables and resolving inquiries and editing the payroll master
file are concentrated in one person's duties. The duties of opening the mail, authorizing
write-offs, authorizing and signing checks and authorizing payroll are concentrated in
another person's duties. The duties of recording receipts, updating accounts and pledges
receivable, initiating checks for expenditure, updating accounts payable and preparing
checks are concentrated in another person's duties. The duties of recording receipts,
updating accounts and pledge receivable, initiating checks and updating accounts payable
are concentrated in another person's duties. The duties of preparing payroll and resolving
inquiries and editing payroll master file are concentrated in another person's duties.
Criteria: Internal controls should be in place that provide an adequate segregation of duties
that separates initiating, processing, recording and reconciling a transaction.
Cause: The size of the Organization's accounting staff precludes certain internal controls
that would be preferred if staff were large enough to provide optimum segregation of duties. Effect: Without a separation of duties, errors or irregularities can occur and not be
discovered in the normal course of business.
Recommendation: This deficiency is the result of the limited accounting staff of the
Organization. We recommend that the Board and CEO continue active involvement by
reviewing operating statements, comparisons to budget, receivables, receipts and
disbursements, to add to existing internal controls in the Organization.
Response: This will be reviewed and assessed to find where duties can be separated and
independently performed within staff.
Preparation of Financial Statements
Condition: Many of the Organizations' general ledger accounts were not in balance with
supporting details and were not reconciled throughout the year on a monthly basis.
Criteria: Financial Statement accounts should be reconciled on a monthly basis to ensure
proper financial reports.
Cause: Balancing of the financial statements was not kept up every month.
Effect: The financial statements looked at every month are not accurate and this could be
misleading.
Recommendation: We recommend that all financial statement accounts be reconciled on a
timely basis so that all financial reports being reviewed are accurate.
Response: Financial statements will be reconciled on a monthly basis and reviewed by the
board. Adjustments that need to be made will be made in a timely manner to ensure the
continued integrity of the financial statements.
Preparation of the SEFA
Condition: A SEFA was prepared by the Organization but there was changes that were made
during the audit to get to a complete and accurate SEFA.
Criteria: The SEFA should include all expenditures of federal awards.
Cause: The financials were not accurate and balanced throughout the year.
Effect: The SEFA prepared by the Organization did not include all federal expenses. Recommendation: We recommend that all federal awards be balanced on a monthly basis to
ensure the preparation of the SEFA is accurate.
Response: In addition to the above, project codes will be implemented in GL for all funds so
that all fund sources and expenses can be identified and reconciled monthly.
Segregation of Duties
Condition: The duties of preparing deposits, investigating discrepancies, maintaining
master files, maintaining the general ledger, making deposits, reconciling the bank accounts,
investigating problems with payables and resolving inquiries and editing the payroll master
file are concentrated in one person's duties. The duties of opening the mail, authorizing
write-offs, authorizing and signing checks and authorizing payroll are concentrated in
another person's duties. The duties of recording receipts, updating accounts and pledges
receivable, initiating checks for expenditure, updating accounts payable and preparing
checks are concentrated in another person's duties. The duties of recording receipts,
updating accounts and pledge receivable, initiating checks and updating accounts payable
are concentrated in another person's duties. The duties of preparing payroll and resolving
inquiries and editing payroll master file are concentrated in another person's duties.
Criteria: Internal controls should be in place that provide an adequate segregation of duties
that separates initiating, processing, recording and reconciling a transaction.
Cause: The size of the Organization's accounting staff precludes certain internal controls
that would be preferred if staff were large enough to provide optimum segregation of duties. Effect: Without a separation of duties, errors or irregularities can occur and not be
discovered in the normal course of business.
Recommendation: This deficiency is the result of the limited accounting staff of the
Organization. We recommend that the Board and CEO continue active involvement by
reviewing operating statements, comparisons to budget, receivables, receipts and
disbursements, to add to existing internal controls in the Organization.
Response: This will be reviewed and assessed to find where duties can be separated and
independently performed within staff.
Preparation of Financial Statements
Condition: Many of the Organizations' general ledger accounts were not in balance with
supporting details and were not reconciled throughout the year on a monthly basis.
Criteria: Financial Statement accounts should be reconciled on a monthly basis to ensure
proper financial reports.
Cause: Balancing of the financial statements was not kept up every month.
Effect: The financial statements looked at every month are not accurate and this could be
misleading.
Recommendation: We recommend that all financial statement accounts be reconciled on a
timely basis so that all financial reports being reviewed are accurate.
Response: Financial statements will be reconciled on a monthly basis and reviewed by the
board. Adjustments that need to be made will be made in a timely manner to ensure the
continued integrity of the financial statements.
Preparation of the SEFA
Condition: A SEFA was prepared by the Organization but there was changes that were made
during the audit to get to a complete and accurate SEFA.
Criteria: The SEFA should include all expenditures of federal awards.
Cause: The financials were not accurate and balanced throughout the year.
Effect: The SEFA prepared by the Organization did not include all federal expenses. Recommendation: We recommend that all federal awards be balanced on a monthly basis to
ensure the preparation of the SEFA is accurate.
Response: In addition to the above, project codes will be implemented in GL for all funds so
that all fund sources and expenses can be identified and reconciled monthly.
Segregation of Duties
Condition: The duties of preparing deposits, investigating discrepancies, maintaining
master files, maintaining the general ledger, making deposits, reconciling the bank accounts,
investigating problems with payables and resolving inquiries and editing the payroll master
file are concentrated in one person's duties. The duties of opening the mail, authorizing
write-offs, authorizing and signing checks and authorizing payroll are concentrated in
another person's duties. The duties of recording receipts, updating accounts and pledges
receivable, initiating checks for expenditure, updating accounts payable and preparing
checks are concentrated in another person's duties. The duties of recording receipts,
updating accounts and pledge receivable, initiating checks and updating accounts payable
are concentrated in another person's duties. The duties of preparing payroll and resolving
inquiries and editing payroll master file are concentrated in another person's duties.
Criteria: Internal controls should be in place that provide an adequate segregation of duties
that separates initiating, processing, recording and reconciling a transaction.
Cause: The size of the Organization's accounting staff precludes certain internal controls
that would be preferred if staff were large enough to provide optimum segregation of duties. Effect: Without a separation of duties, errors or irregularities can occur and not be
discovered in the normal course of business.
Recommendation: This deficiency is the result of the limited accounting staff of the
Organization. We recommend that the Board and CEO continue active involvement by
reviewing operating statements, comparisons to budget, receivables, receipts and
disbursements, to add to existing internal controls in the Organization.
Response: This will be reviewed and assessed to find where duties can be separated and
independently performed within staff.
Preparation of Financial Statements
Condition: Many of the Organizations' general ledger accounts were not in balance with
supporting details and were not reconciled throughout the year on a monthly basis.
Criteria: Financial Statement accounts should be reconciled on a monthly basis to ensure
proper financial reports.
Cause: Balancing of the financial statements was not kept up every month.
Effect: The financial statements looked at every month are not accurate and this could be
misleading.
Recommendation: We recommend that all financial statement accounts be reconciled on a
timely basis so that all financial reports being reviewed are accurate.
Response: Financial statements will be reconciled on a monthly basis and reviewed by the
board. Adjustments that need to be made will be made in a timely manner to ensure the
continued integrity of the financial statements.
Preparation of the SEFA
Condition: A SEFA was prepared by the Organization but there was changes that were made
during the audit to get to a complete and accurate SEFA.
Criteria: The SEFA should include all expenditures of federal awards.
Cause: The financials were not accurate and balanced throughout the year.
Effect: The SEFA prepared by the Organization did not include all federal expenses. Recommendation: We recommend that all federal awards be balanced on a monthly basis to
ensure the preparation of the SEFA is accurate.
Response: In addition to the above, project codes will be implemented in GL for all funds so
that all fund sources and expenses can be identified and reconciled monthly.
Segregation of Duties
Condition: The duties of preparing deposits, investigating discrepancies, maintaining
master files, maintaining the general ledger, making deposits, reconciling the bank accounts,
investigating problems with payables and resolving inquiries and editing the payroll master
file are concentrated in one person's duties. The duties of opening the mail, authorizing
write-offs, authorizing and signing checks and authorizing payroll are concentrated in
another person's duties. The duties of recording receipts, updating accounts and pledges
receivable, initiating checks for expenditure, updating accounts payable and preparing
checks are concentrated in another person's duties. The duties of recording receipts,
updating accounts and pledge receivable, initiating checks and updating accounts payable
are concentrated in another person's duties. The duties of preparing payroll and resolving
inquiries and editing payroll master file are concentrated in another person's duties.
Criteria: Internal controls should be in place that provide an adequate segregation of duties
that separates initiating, processing, recording and reconciling a transaction.
Cause: The size of the Organization's accounting staff precludes certain internal controls
that would be preferred if staff were large enough to provide optimum segregation of duties. Effect: Without a separation of duties, errors or irregularities can occur and not be
discovered in the normal course of business.
Recommendation: This deficiency is the result of the limited accounting staff of the
Organization. We recommend that the Board and CEO continue active involvement by
reviewing operating statements, comparisons to budget, receivables, receipts and
disbursements, to add to existing internal controls in the Organization.
Response: This will be reviewed and assessed to find where duties can be separated and
independently performed within staff.
Preparation of Financial Statements
Condition: Many of the Organizations' general ledger accounts were not in balance with
supporting details and were not reconciled throughout the year on a monthly basis.
Criteria: Financial Statement accounts should be reconciled on a monthly basis to ensure
proper financial reports.
Cause: Balancing of the financial statements was not kept up every month.
Effect: The financial statements looked at every month are not accurate and this could be
misleading.
Recommendation: We recommend that all financial statement accounts be reconciled on a
timely basis so that all financial reports being reviewed are accurate.
Response: Financial statements will be reconciled on a monthly basis and reviewed by the
board. Adjustments that need to be made will be made in a timely manner to ensure the
continued integrity of the financial statements.
Preparation of the SEFA
Condition: A SEFA was prepared by the Organization but there was changes that were made
during the audit to get to a complete and accurate SEFA.
Criteria: The SEFA should include all expenditures of federal awards.
Cause: The financials were not accurate and balanced throughout the year.
Effect: The SEFA prepared by the Organization did not include all federal expenses. Recommendation: We recommend that all federal awards be balanced on a monthly basis to
ensure the preparation of the SEFA is accurate.
Response: In addition to the above, project codes will be implemented in GL for all funds so
that all fund sources and expenses can be identified and reconciled monthly.