Finding Text
Criteria: Effective segregations and oversight should be present to ensure proper recordkeeping and reporting.
Condition: Certain duties within significant financial cycles were not adequately segregated. Further, this contributed to inadequate review and oversight to properly present certain account balances within the financial statements and certain supporting reconciliations and support.
Cause: During the year, the Finance department operates with a limited number of personnel. The overall lack of segregation requires that management and the board remain attentive and build in additional oversight functions, especially with respect to cash receipt, disbursement and payroll cycles, including the associated supporting records. This revenue and oversight is important in proper classification of account balances including investment revenue and release of net assets with donor restrictions.
Effect: The lack of segregation leave the organization and their financial records vulnerable. The lack of oversight led to significant reclassifications within revenue accounts to present classifications in accordance with GAAP.