Finding 34372 (2022-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-02-19

AI Summary

  • Core Issue: Employees can both prepare and post journal entries, which violates proper internal controls.
  • Impacted Requirements: Lack of segregation of duties increases the risk of errors going unnoticed.
  • Recommended Follow-Up: Implement procedures for an independent review and approval of all journal entries.

Finding Text

Finding 2022-001 Condition: Employees have access to prepare and post journal entries in the general ledger system. Criteria: Internal controls should be in place that provide reasonable assurance that proper segregation of duties are implemented to prevent and detect misstatements. Cause: There are no procedures in place that require an employee who is independent of preparing and posting journal entries to review and approve the journal entries. Effect: Because of the lack of segregation of duties, there is an increased risk that intentional or unintentional errors could be made and not be detected in a timely manner. Recommendation: Procedures should be implemented that requires an employee who is independent of preparing and posting journal entries to review and approve all journal entries.

Corrective Action Plan

The Organization agrees with the finding. Management?s current accounting software ?Great Plains? does not provide the capability of not allowing one from creating and posting their own journal entries. Management is presently looking at new software that will have this feature in place.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 610814 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.305 Education Research, Development and Dissemination $1.74M