Finding 47428 (2022-001)

Finding 2022-001: SEGREGATION OF DUTIES Repeat Finding from Prior Year Yes Condition The number of employees performing accounting and bookkeeping duties is not sufficient to provide an adequate segregation of duties. Criteria Circumstances permitting, accounting and bookkeeping duties should be assigned to different individuals to promote safeguarding of assets and accuracy of financial information. Cause The Association has limited resources that minimize the possibility to segregate the functions within the business office. Effect Because of the limited number of individuals involved in the accounting and bookkeeping functions, there is a greater risk that assets will not be properly safeguarded and that errors in financial information will occur and not be detected in a timely manner. Questioned Costs Not applicable Sampling Method Not applicable Recommendation Although it is not cost efficient to increase the number of employees performing accounting and bookkeeping functions, all employees either supervising or performing the duties, and the Board of Directors of the Association should constantly be aware of this deficiency in internal controls. Response and Views of Responsible Officials See Corrective Action Plan and Response to Findings.