Finding Text
2022-001: Segregation of Duties Criteria: Management is responsible for establishing and maintaining effective internal controls. Condition and Context: During our review and testing of internal controls, we noted that certain primary accounting functions or activities of the Organization are performed and/or approved by the same individual. Effect: The Organization?s internal control structure does not result in adequate segregation of duties to prevent losses from employee error and dishonesty. Cause: The Organization has a limited number of office personnel who have direct responsibilities for the recording and reconciling functions in the primary transaction cycles. Identification as a Repeat Findings: This is a repeat finding of 2021-001 and 2020-001. Recommendation: With a limited number of personnel and funds, segregation of duties is difficult. The Organization should continue to review its operating procedures to attempt to obtain the maximum internal control within the limited available resources. The Board should continue to closely monitor and perform periodic oversight of the Organization?s monthly financial activities. Response and Corrective Action Planned: The Project of the Quad Cities has implementing new accounting software which will tighten internal controls with a limited staff. We will apply features in the system that will reduce and eliminate risk to the Organization. The Board of Directors has recruited an experienced professional in the community to serve as Treasurer on the Board. Collaboration will continue with our independent accounting firm to ensure that we are following all appropriate accounting practices. Conclusion: Response accepted