Finding Text
Finding No 2022-001 - Segregation of Duties - Condition and Criteria: Limited number of staff prevents separation of functions necessary to assure adequate internal control structure. Over the past few years, management has implemented several compensating controls to limit the severity of the deficiency, including: hiring an outsourced accountant who performs quarterly reviews, implementing a director-level review of expense reimbursements and purchase requests prior to disbursement, and having another staff member reconcile the bank statements. However, the staff member preparing the reconciliations is closely related to the Executive Director and the Executive Director remains responsible for performing substantially all bookkeeping and accounting functions, including having the ability to print and sign checks. Effect: Significant deficiency in internal controls. Cause: Limited staff and resources are available to provide ideal segregation of duties. Auditor?s Recommendation: Since the Organization now has additional employees, management should consider having another employee, not related to the Executive Director, if feasible, perform some of the functions currently performed by the Executive Director, to further segregate duties. Additionally, the Organization could continue to explore ways the outsourced accountant can take on even greater roles in monthly activities. Views of Responsible Officials and Planned Corrective Actions: As noted above, The Trust for Tomorrow continues to add compensating controls each year when possible. Further, we will continue to review our processes to determine where duties can be segregated amongst existing staff. Additionally, the board will continue to provide close oversight of the Organization and evaluate that oversight on a consistent basis.