Finding Text
Condition: During our audit, we noted a lack of segregation of duties, specifically related to cash receipts. One member of management creates deposit slip, takes deposit to bank, inputs deposit into accounting software and reconciles the bank statement. Criteria: The Alliance should have adequate segregation of duties as part of its internal controls. Cause: The Alliance is a smaller organization with limited availability of staff for segregation. Effect: A member of management could misappropriate assets due to the lack of segregation of duties over cash receipts. Recommendation: We recommend that the Alliance revise their internal controls and policies. The Alliance should implement a system of controls which ensures segregation of duties in the cash receipts cycle. Views of Responsible Officials and Corrective Action: See Corrective Action Plan.