Finding 1160360 (2023-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2025-10-13

AI Summary

  • Core Issue: Lack of controls and segregation of duties over the deposit process increases risk of misappropriation.
  • Impacted Requirements: Financial records may not accurately reflect revenue due to timing differences and insufficient oversight.
  • Recommended Follow-Up: Implement routine review and reconciliation of bank statements to ensure all receipts are accounted for.

Finding Text

2023-002 Oversight over the Revenue Process Criteria: The Organization lacks controls and segregation of duties over the deposit process. Condition and Context: The deposits are primarily handled by one person with little oversight. Timing differences may occur between receipt of payment and deposit into the financial institution. Cause: There is not currently a review and/or reconciliation of the bank statement in comparison to the deposit log. Effect: Receipts could potentially be misappropriated. The financial records may not reflect the correct revenue and/or receivables for the period due to timing differences. Repeat Finding: Repeat finding of 2022-001. Recommendation: We recommend routine review and reconciliation of the bank statement to ensure all receipts are included and activity through the bank accounts appear to be in accordance with the activities of the Organization. Management Response: Management agrees with finding. Procedures are being implemented to ensure an appropriate review process, see attached corrective action plan.

Corrective Action Plan

2023-002: Oversight over the Revenue Process Responsible Party: Libby Albers, Executive Director Implementation Date: Originally 2/15/2024, revised to retroactively begin with the 1/1/2025 statement 1. KAWS Executive Director will continue to log deposits and deposit documentation in an internal spreadsheet and reporting each deposit to the KAWS accountant via email. The Conservation Easement Specialists will check the deposit spreadsheet against the monthly bank statement to ensure that all deposits are present. This extra reviewer of bank statements is independent of any of the parties handling the deposits. 2. The Executive Director will request a monthly reconciliation report from the independent accountant and the Conservation Easement Specialist will compare the data against the expense reporting platforms, payment requests, and bank statements. The Conservation Easement Specialists will provide an email response upon completion of the review of the statements.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1160359 2023-001
    Material Weakness Repeat
  • 1160361 2023-003
    Material Weakness Repeat
  • 1160362 2023-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
15.611 Wildlife Restoration and Basic Hunter Education and Safety $123,420
10.931 Agricultural Conservation Easement Program $82,149
66.460 Nonpoint Source Implementation Grants $57,325
15.623 North American Wetlands Conservation Fund $38,000
10.932 Regional Conservation Partnership Program $30,447
20.219 Recreational Trails Program $5,708