Finding Text
Condition: Due to the size of the Organization, various functions are performed by
the same person. Criteria: The size of the office staff precludes a proper segregation of functions to
assure adequate internal control. 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. Cause: Limited staff is avaialble to segregate duties. Effect: Because of the lack of segregation duties, unauthorized transactions
could occur in the Organization’s operations and errors could be
undetected. Recommendation: The duties should be separated as much as possible and compensating
controls should be used to compensate for the lack of separation of
duties. The Board should rely on its knowledge of the operations of the
Organization. Management's Response: The Organization is aware of the lack of segregation of duties caused by
the limited size of its staff, and will continue to use other controls, where
practical to compensate for this limitation.