Finding 30402 (2022-001)

2022-001 Lack of Segregation of Duties Condition ? Due to the limited number of employees employed by Theater Latte Da, there is a lack of adequate segregation of duties. Criteria ? Effective internal controls, including an adequate segregation of duties, over the financial reporting process are necessary to prevent misstatements. The basic premise is that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Effect ? A misstatement of the financial statements could occur and not be prevented or detected. Cause ? Theater Latte Da has a limited number of staff. Recommendation ? Management and the Board of Theater Latte Da should continue to be active in monitoring financial reports and activities of the organization to ensure oversight to help compensate for the lack of segregation. Auditee's comments and response ? Management and the Board of Theater Latte Da will continue to monitor financial reports and activities of the organization to ensure proper oversight and will accept responsibility for the annual consolidated financial statements prior to their issuance. Responsible party for the corrective action ? Elisa Spencer-Kaplan, Managing Director SECTION III - FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAM AUDIT No matters were noted.