Finding Text
Condition: A key concept of internal controls is the separation of duties and timely financial reporting. During the fiscal year, transactions were posted late and bank reconciliations were not timely. The recording of transactions was not only late but inaccurately recorded in the financial records. The controls related to oversight of the financials systems and reporting were not in place to provide timely financial reports. The segregation of duties in recording transactions was not in place. Recommendation: Ideal segregation of duties is difficult to achieve in a small organization. However, steps should be taken to separate responsibilities where possible or implement other compensating controls where that is not possible. The oversight of these controls and reporting need to be established. Management's response: In conscientious recognition of these challenges, the newly appointed CEO, who assumed leadership in 2023, has undertaken a comprehensive approach to rectify and fortify organizational processes. A structured framework, incorporating checks and balances, has been implemented. This framework mandates monthly reporting directly to the CEO, treasurer, and board. This restructuring aims to fortify our organizational resilience and ensure adherence to best practices. Management reassures our commitment to a progressive and responsible trajectory, leadership is unwaveringly confident that, with the ongoing training initiatives, installation of best practices, and stringent accountability requirements, segregation of duties will be established.