Finding 1143449 (2024-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-06-25
Audit: 359885
Organization: The Trust for Tomorrow (NC)

AI Summary

  • Core Issue: Limited staff prevents proper separation of functions, risking internal control effectiveness.
  • Impacted Requirements: Essential internal controls are compromised due to the Executive Director handling most bookkeeping tasks.
  • Recommended Follow-up: Consider hiring additional staff or further outsourcing to enhance internal control measures.

Finding Text

Limited number of staff prevents separation of functions necessary to assure adequate internal control structure. Over the past few years, management has implemented several compensating controls to limit the severity of the deficiency, including: hiring an outsourced accountant who performs quarterly reviews, implementing a director-level review of expense reimbursements and purchase requests prior to disbursement, and hiring a Director of Financial Operations,. However, the Executive Director remains responsible for performing substantially all bookkeeping and accounting functions, including having the ability to print and sign checks.

Categories

Procurement, Suspension & Debarment Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 567007 2024-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.931 Agricultural Conservation Easement Program $6.38M
10.072 Wetlands Reserve Program $484,235