Finding 972667 (2023-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-05-09

AI Summary

  • Core Issue: There is a lack of proper separation of duties, particularly involving the Executive Director and their close relative in financial processes.
  • Impacted Requirements: This situation raises concerns about internal controls and the risk of fraud or errors due to overlapping responsibilities.
  • Recommended Follow-Up: Continue enhancing board oversight and explore additional ways to separate duties, even with a small staff.

Finding Text

Proper separation of duties is not maintained over certain areas within the Museum. At times, a close relative of the Executive Director verifies cash received and prepares the deposit slip. The Executive Director then posts receipts to the general ledger and receives and reconciles the monthly bank statements. A close relative of the Executive Director also receives and verifies gift shop inventory that is ordered by the Executive Director. This does not mitigate the separation of duties issue. The small size of the Museum’s staff limits the extent of separation of duties. However, the Museum has taken certain steps, including increased board involvement and review, to separate incompatible duties

Categories

Equipment & Real Property Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 396225 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.69M