Finding Text
Condition: The Organization had policies and procedures that were followed for processing accounting and personnel transactions. However, the policies and procedures were not formulated in a written document. In addition, there were some processes performed by employees that were not properly segregated and should have been performed by other employees. Criteria: Entities should have written policies and procedures to ensure uniformity and consistency by employees when performing their duties and responsibilities. Accounting functions should be properly segregated so that one employee is not performing every critical process. Cause: The Organization did not have many accounting transactions in the prior year. Effect: The lack of documented policies and procedures increases the risk of employees not processing transactions properly and circumventing internal controls. Recommendation: We recommend the Organization develop written policies and procedures. The policies and procedures should include duties and responsibilities that are properly segregated between the employees for each critical process. Views of Responsible Official and Planned Corrective Action: The Organization understands and accepts the identification of a lack of written internal controls and full segregation of duties. Accounting policies and procedures will be reviewed, approved by the Finance Committee, and recorded in a written document. The Organization did not have adequate staff to segregate all accounting duties and is continually working to clearly define roles, responsibilities, and control activities. The Organization will regularly review current processes, access rights, and role assignments and train employees involved in accounting functions to adhere to segregation procedures.