Finding Text
FINDING 2024-001: Lack of Segregation of Duties - Criteria – A good system of internal controls contemplates an adequate segregation of duties so that no one individual handles a transaction from its inception to completion. Condition – The small size of NeDA’s staff limits the extent of optimal segregation of duties. Cause – The size of NeDA’s staff and budget constraints precludes certain internal controls that would be preferred if it were large enough to provide optimum segregation of duties. Effect – A material misstatement of the consolidated financial statements occurred and was not detected. Repeat Finding – No. Recommendation – Management, the contract accountant, and the Board of NeDA should remain involved on the financial affairs of NeDA on a regular basis to provide oversight and independent review functions and mitigate the weakness created by the lack of segregation. Auditee's comments and response – Management, the Board, and its contracted accounting staff will regularly monitor financial reports and activities of NeDA. Responsible party for the corrective action – Maria Steffel, Executive Director