Core Issue: The Hospital's limited staff size prevents proper segregation of duties, risking internal control weaknesses.
Impacted Requirements: Employees have access to both physical assets and accounting records, violating best practices for internal controls.
Recommended Follow-Up: Assess staffing needs and implement measures to ensure adequate segregation of duties in accounting processes.
Finding Text
Finding 2023.002–Segregation of Duties
Condition – The size of the Hospital’s staff in charge of accounting and reporting precludes a proper segregation of
duties to ensure adequate internal controls. The basic premise is that no one employee should have access to both
physical assets and the related accounting records or to all phases of a transaction. The following segregation of
duties issues were noted during the audit:
Corrective Action Plan
Recommendation – We recommend management and those charged with governance continue to evaluate whether
to accept the degree of risk associated with this condition because of cost or other considerations.
Management’s Response – The Hospital does not have the resources available to increase staff size and address this
internal control deficiency. The Board of Directors and management are aware of the incompatible duties and will
continue to provide oversight and monitor the Hospital’s operations
Categories
Internal Control / Segregation of DutiesHUD Housing ProgramsReporting