Finding 567007 (2024-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-06-25
Audit: 359885
Organization: The Trust for Tomorrow (NC)

AI Summary

  • Core Issue: Limited staff prevents proper separation of functions, risking internal control effectiveness.
  • Impacted Requirements: Essential internal controls are compromised due to the Executive Director handling most bookkeeping tasks.
  • Recommended Follow-up: Consider hiring additional staff or further outsourcing to enhance internal control measures.

Finding Text

Limited number of staff prevents separation of functions necessary to assure adequate internal control structure. Over the past few years, management has implemented several compensating controls to limit the severity of the deficiency, including: hiring an outsourced accountant who performs quarterly reviews, implementing a director-level review of expense reimbursements and purchase requests prior to disbursement, and hiring a Director of Financial Operations,. However, the Executive Director remains responsible for performing substantially all bookkeeping and accounting functions, including having the ability to print and sign checks.

Corrective Action Plan

As noted above, The Trust for Tomorrow continues to add compensating controls each year when possible. For example, the Director of Financial Operations was present for the full fiscal year under audit, and this individual has taken over certain responsibilities, including but not limited to general ledger coding, review and approval of invoices, processing timesheets, and handling expense reimbursement requests. Further, we will continue to review our processes to determine where duties can be segregated amongst existing staff, as well as look to hire a new DFO or contract additional responsibilities to an outsourced accountant. Additionally, the board will continue to provide close oversight of the Organization and evaluate that oversight on a consistent basis.

Categories

Procurement, Suspension & Debarment Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1143449 2024-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.931 Agricultural Conservation Easement Program $6.38M
10.072 Wetlands Reserve Program $484,235