Finding Text
Criteria Internal control systems should include procedures to separate duties so that no one individual controls assets and performs the related record keeping. Condition The size of the Organization is such that its accounting staff is not large enough to provide segregation of duties that would be ideal. Cause Due to limited staff, management is unable to properly segregate duties. Effect Due to the lack of segregation of duties, unauthorized transactions could occur within the Organization. Recommendation We recognize that the Organization is not large enough to make the employment of additional persons for the purpose of segregating duties practical from a financial standpoint. We recommend that the Organization continue to have the Executive Director and Board of Directors review the financial information. Management’s Response The Organization is aware of the lack of segregation of duties caused by the limited size of its staff and therefore, agrees with the finding. The Organization will continue to improve segregation of duties as they are able and continue to have the Board of Directors involved as much as possible.