a. Comments on the Finding and Each Recommendation:
We concur with the finding that DIMA V, Inc. requires segregation of duties. We recognize that the current structure does not adequately separate key financial responsibilities, which could lead to potential risks such as errors, fraud, or lapses ...
a. Comments on the Finding and Each Recommendation:
We concur with the finding that DIMA V, Inc. requires segregation of duties. We recognize that the current structure does not adequately separate key financial responsibilities, which could lead to potential risks such as errors, fraud, or lapses in internal controls. Segregation of duties is essential to maintaining the integrity of our financial operations and ensuring that no single individual has unchecked control over critical financial processes. We are committed to addressing this concern and will take immediate action to implement the necessary changes, including hiring a bookkeeper and restructuring our financial workflows to ensure proper segregation of duties.
b. Action(s) Taken or Planned on the Finding:
1. Immediately Institute Monthly Meetings:
We will begin holding monthly meetings, starting January 2025, to review financial statements, budgets, and forecasts, as well as compliance-related data. These meetings will include key stakeholders and relevant team members, ensuring that we have timely discussions on financial status, variances, and any compliance-related issues.
2. Hire a Bookkeeper to Support Segregation of Duties:
In the next 120 days we will proceed with the hiring of a bookkeeper to provide additional support for segregation of duties in our financial operations. The bookkeeper will be responsible for recording transactions and ensuring that tasks such as accounts payable, accounts receivable, and reconciliation are appropriately separated. This will enhance internal controls and minimize the risk of errors or fraud.