Core Issue: The Institute lacks sufficient staff to properly separate duties, which is crucial for strong internal controls.
Impacted Requirements: This affects controls over the general ledger, cash receipts, cash disbursements, and bank reconciliations.
Recommended Follow-Up: Consider implementing compensating controls or additional oversight to mitigate risks associated with this lack of segregation.
Finding Text
Segregation of Duties - The Institute is not large enough to permit an adequate segregation of
employee duties for effective internal control over general ledger, cash
receipts, cash disbursements, and bank reconciliations.
Corrective Action Plan
Management has noted this condition and has determined that the
cost necessary to establish adequate segregation of duties is not
justifiable at this time.