Finding Text
Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately. Condition: Key duties and functions are not segregated among Organization personnel. Specifically, duties should be segregated to serve as a check and balance, those with access to the accounting system should not be a bank account signor. Cause: There are a limited number of personnel for certain functions. Effect or Potential Effect: The potential effect could be collusion, or material fraud. Questioned Costs: None. Recommendation: Key duties in the control environment should be segregated as much as possible, specifically we would recommend ensuring that bank signature authority be restricted to individuals with no access to the accounting system. Views of Responsible Official: The Organization is aware of the limited segregation of duties and will review internal controls and make the following changes: The Organization will contact the bank to have account access to view transactions only and remove any persons with access to the accounting system as an account signor.