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:
Categories
Internal Control / Segregation of DutiesHUD Housing ProgramsReporting