Core Issue: The Organization has a significant lack of segregation of duties in handling cash receipts and disbursements.
Impacted Requirements: Proper segregation of duties is essential to prevent and detect errors in financial reporting.
Recommended Follow-Up: Assess internal controls and create a policy to ensure segregation of duties for cash transactions.
Finding Text
Finding 2022-001 - Lack of Segregation of Duties (Material Weakness on Internal Control over
Financial Reporting)
Condition: During our audit it was noted that the Organization lacks segregation of duties for
cash receipts and disbursements.
Criteria: The Organization should maintain proper segregation of duties in accounting to prevent
and detect errors.
Cause: The Organization has grown considerably over the past couple of years and has limited
accounting staff.
Effect: Increased possibility of undetected errors or irregularities.
Recommendation: We recommend that the Organization assess the internal controls over cash
receipts and disbursements and develop a policy of segregation of duties.
Views of Responsible Officials and Corrective Action: See Corrective Action Plan.
Categories
Internal Control / Segregation of DutiesMaterial WeaknessReporting