Finding 1152117 (2023-001)

Criteria: The Organization must ensure appropriate segregation of duties surrounding key control procedures to mitigate potential risk. Condition: The Organization lacks appropriate segregation of duties related to the key control procedures surrounding the receipt, record keeping, and depositing of contributed funds. Page 18 SMITHVILLE COMMUNITY COALITION, INC. Schedule of Findings and Questioned Costs Year Ended December 31, 2023 Cause: A single employee, the Finance and Office Administrator, of the Organization is responsible for opening the mail, recording the transactions within QuickBooks, and depositing the funds at the bank. Effect: The completeness of revenue cannot be assured due to the lack of segregation of duties surrounding the deposit procedures. Recommendation: An individual independent of the record keeping should be responsible for opening the mail and documenting its contents within the donor software utilized by the Organization. The contents of the mail should then be given to the Finance and Office Administrator for recording the transactions within QuickBooks and for depositing the funds. Management Response: The Organization will implement the auditor’s recommendation above.