Finding Text
Lack of Oversight/Segregation of Duties Criteria: An organization’s accounting duties should be adequately segregated among personnel.
Condition: The Organization’s relies on a volunteer Treasurer who is solely responsible for many
functions within the financial system.
Cause: The Organization had multiple volunteer Treasurers during the year which led to
inconsistencies in the financial reporting and presentation, and no additional documented oversight or
review from the Board of Directors was performed.
Effect: The auditors identified several material misstatements in the initial financial records, which
necessitated multiple adjusting journal entries to ensure the accuracy of the financial statements.
Recommendation: The Organization should implement proper monitoring and oversight regarding the
review of bank statements, reconciliations, cancelled check images, and other direct charges to bank
accounts, review of payroll registers, review of monthly financial statements, and review of monthly
general ledger activity.
Management Response: The Organization’s Board of Directors will ensure its review of the monthly
bank statements, reconciliations and cancelled check images, payroll registers, financial statements and
general ledger activity is documented through physical signatures, sign off with initials or email
approval. The Organization will