Finding Text
Condition: During the audit process, we noted that the Board of Directors did not meet during the current fiscal year. We also noted that there was only one board member on the Board of Directors, which does not comply with the Organization’s most recently amended by-laws.
Effect: A control deficiency exists when the design or operation of a control does not follow its intended purpose. This could affect the Organization’s ability to initiate, record, process, and report financial data consistent with the assertions of management in the financial statements.
Cause: The members of the Board of Directors had resigned and were not replaced with new board members. No meetings were held as there was only one member on the Board of Directors.
Criteria: The Organization should ensure that the Board of Directors has a minimum of seven members at all times and are meeting quarterly, as stipulated in the most recently amended by-laws.
Recommendation: We recommend that the Organization add members to the Board of Directors so that there are at least seven members serving on the Board. We also recommend that the Board meets quarterly so that they are compliant with the most recently amended by-laws.
Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and
the auditor’s recommendations will be adopted.