Finding Text
Condition - The Organization had a lack of segregation of duties during the year ended June 30, 2024.
Criteria - Internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties.
Cause -During the fiscal year, the Association had a limited number of staff and none whose job function is dedicated to the Association’s accounting functions.
Effect - The Association could not maintain segregation of duties.
Recommendation - When a lack of segregation of duties exists, management’s close supervision and review of accounting information are the best means of preventing or detecting errors and irregularities.