Audit 346673

Condition: Previously and during current audit fieldwork, it was noted there was a general lack ofsegregation of duties. Criteria: Management is responsible for designing a system of internal controls that is designed to ensure that no one individual has access to resources (e.g. cash and investments) if the individual is also responsible for processing, summarizing, and reporting information or authorizing transactions. Certain functions, such as segregating cash receipts and cash disbursements from anyone with the ability and/or responsibility to record these transactions in the general ledger and/or reconcile accounts in the general ledger provide a mechanism for preventing or detecting errors or irregularities on a timely basis. Cause: The Organization has few staff working in the accounting office. Effect: Not having formal documentation of review procedures and/or having multiple individuals perform tasks in a process could increase the risk of misstatement due to fraud or error. Recommendation: We recommend that the organization of the finance department and the functions assigned to the individual staff be reviewed and possibly modified to improve internal controls and the segregation of duties. Corrective Action Plan: The Organization’s Treasurer will implement internal controls to improve the segregation of duties, specifically around the cash receipt and disbursement processes.

Condition: Previously and during current audit fieldwork, it was noted there was a general lack ofsegregation of duties. Criteria: Management is responsible for designing a system of internal controls that is designed to ensure that no one individual has access to resources (e.g. cash and investments) if the individual is also responsible for processing, summarizing, and reporting information or authorizing transactions. Certain functions, such as segregating cash receipts and cash disbursements from anyone with the ability and/or responsibility to record these transactions in the general ledger and/or reconcile accounts in the general ledger provide a mechanism for preventing or detecting errors or irregularities on a timely basis. Cause: The Organization has few staff working in the accounting office. Effect: Not having formal documentation of review procedures and/or having multiple individuals perform tasks in a process could increase the risk of misstatement due to fraud or error. Recommendation: We recommend that the organization of the finance department and the functions assigned to the individual staff be reviewed and possibly modified to improve internal controls and the segregation of duties. Corrective Action Plan: The Organization’s Treasurer will implement internal controls to improve the segregation of duties, specifically around the cash receipt and disbursement processes.