Finding Text
Condition: We identified a significant deficiency related to the Organization’s segregation of duties. Specifically, the accounting department lacked proper segregation of duties in key areas, including accounting, banking procedures, and cash disbursements, increasing the risk of errors and unauthorized transactions. Criteria: An important element of internal accounting controls is an adequate segregation of duties such that no individual has the responsibility to execute a transaction, possess access to the related assets, and have responsibility or authority to record the transaction. Effect: A lack of segregation of duties subjects the Organization to a higher risk that errors or fraud could occur and not be detected in a timely manner in the normal course of business. Recommendation: We recommend that the Organization develop new written accounting procedures that include proper segregation of duties in the accounting department. Response: The Organization is in agreement with the finding and will review responsibilities during the 2025 year to determine and allow for sufficient segregation of duties.