Finding Text
Lack of Supervision and Review Criteria: An organization should have an internal control system that implements appropriate supervision and review controls and procedures, including documentation of the review. Condition: The organization was lacking supervision and review of controls and procedures for the first portion of the fiscal year. In some instances, management is performing, but not documenting the review. Cause: Certain accounting procedures are not being reviewed and/or documented by management. 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 2021-002 in the prior year report. Recommendation: We commend management for updating the Accounting Policies and Procedures Manual and implementing several supervision and review processes. We recommend management review their current process to ensure that adequate supervision and reviews are being conducted and documented on all financial transaction processes. Responsible Official?s Response: Hired a new staff member to assist with the accounting duties. With the new role we are in the process of updating the supervision and review of financial records.