Finding Text
"Condition ? During our audit we reviewed procedures over transaction cycles related to receipting, cash disbursements and payroll and found the Organization to have limited segregation of duties related to the disbursements cycle. Criteria ? Adequate separation of duties calls for clear segregation of functions such as receipts, disbursements, recording, custody of assets, transaction authorization and performance monitoring. Cause ? The accounting staff of the Organization maintain and control the check stock, prepares checks, records disbursements, prepares deposits and posts to general ledger. Effect ? The existence of this limited segregation of duties increases the risk of misstatement or fraud. Recommendation ? While we recognize the number of staff is not large enough to eliminate these deficiencies entirely, we believe the risk has been reduced with better monitoring through the Board and other parties reviewing cancelled checks and unopened bank statements and reviewing the bank reconcilement."