Finding Text
Condition: The size of the office staff precludes optimal segregation of accounting functions to assure adequate internal control. The condition is not unusual in non-profit entities this size.
Criteria: Internal controls should be in place so no one person handles a transaction from beginning to end and incompatible duties between functions are not handled by the same person.
Context: The Organization has limited office staff performing multiple accounting duties.
Cause: The Organization finds it unnecessary, due to its size, to have a large office staff in place to segregate all of the accounting functions. The cost does not outweigh the benefit at this time.
Effect: Because of the small office staff, the entity relies on a limited number of individuals to handle all the accounting functions.
Recommendation: Management and Board of Directors should remain aware of this situation and continue to monitor the various functions of the office staff and review detail reports to improve reliance on information prepared. Views of Responsible Officials and Planned Corrective Action: Management and the Board of Directors will continue to monitor the accounting function. Management and Board of Directors continue to review financial transactions at board meetings. Procedures have been formalized for Administrator and Board oversight.