Audit 386317

2025-001 - SEGREGATION OF DUTIES IN ACCOUNTING DEPARTMENT CRITERIA - MANY SMALL ORGANIZATIONS RELY ON ONE OR TWO INDIVIDUALS TO PERFORM THE ACCOUNTING FUNCTIONS. ONE OR TWO EMPLOYEES IN THE ACCOUNTING DEPARTMENT DOES NOT PROVIDE ADEQUATE SEGREGATION OF DUTIES. CONDITION - IN OUR JUDGMENT, THE BOARD'S ACCOUNTING STAFF IS NOT LARGE ENOUGH TO PERMIT ADEQUATE SEGREGATION OF DUTIES AS REPORTED ABOVE. THIS LACK OF SEGREGATION OF DUTIES DOES NOT ALLOW MANAGEMENT TO DETECT AND CORRECT A MATERIAL MISSTATEMENT IF PRESENT. DUE TO THE SIZE OF THE BOARD'S STAFF IT IS ANTICIPATED THAT THIS WILL BE AN ONGOING FINDING. CAUSE - IN OUR JUDGMENT, THE BOARD'S ACCOUNTING STAFF IS NOT LARGE ENOUGH TO PERMIT ADEQUATE SEGREGATION OF DUTIES AS REPORTED ABOVE. DUE TO THE SIZE OF THE BOARD'S STAFF IT IS ANTICIPATED THAT THIS WILL BE AN ONGOING FINDING. EFFECT - THIS LACK OF SEGREGATION OF DUTIES DOES NOT ALLOW MANAGEMENT TO DETECT AND CORRECT A MATERIAL MISSTATEMENT IF PRESENT. CONTEXT - ONE OR TWO EMPLOYEES IN THE BOARD'S ACCOUNTING DEPARTMENT DOES NOT PROVIDE ADEQUATE SEGREGATION OF DUTIES. REPEAT FINDING - THIS FINDING WAS REPORTED IN THE IMMEDIATELY PRIOR AUDIT AS FINDING 2024-001. RECOMMENDATION - IN OUR JUDGMENT, MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE NEED TO UNDERSTAND THE IMPORTANCE OF THIS COMMUNICATION. HOWEVER, DUE TO THE LACK OF RESOURCES AVAILABLE TO MANAGEMENT TO CORRECT THIS WEAKNESS OF SEGREGATION OF DUTIES, WE RECOMMEND MANAGEMENT MITIGATE THIS WEAKNESS WITH POSSIBLE COMPENSATING CONTROLS SUCH AS CLOSE SUPERVISION AND MONITORING BY MANAGEMENT AND BY THE GOVERNING BOARD.