Finding Text
Lack of Segregation of Duties Criteria: An organization should have an internal control system that limits any single individual from having control over two or more phases of a financial transaction or operation. Condition: One person has the responsibility and access to the majority of the accounting and financial systems. Cause: The executive director has the responsibility and access to the majority of the accounting and financial systems. Effect: There is an increased likelihood that that misstatements may occur and not be detected by the organization?s system of internal control. Repeat Finding: This is a repeat finding, see finding 2021-001 in the prior year report. Recommendation: We commend management for updating the Accounting Policies and Procedures Manual and identifying additional ways to segregate duties as much as possible, however, with a small staff, segregation of all duties may not be possible and the organization should analyze the cost benefit of adding an additional staff member. Responsible Official?s Response: Hired a new staff member to assist with the accounting duties. With the new role we will be reviewing accounting policies to further improve the segregation of duties.