MISSOURI ASSOCIATION OF THE DEAF APARTMENT ASSOCIATES 085-11167Non-Profit

Criteria: Duties should be segregated to provide reasonable assurance that transactions are handled appropriately. Condition: There is a lack of segregation of duties among the Organization?s personnel as well as lack of visible approval of transactions. Journal entries are not being reviewed. Questioned Costs: None were noted. Context: No visible sign of review or approval on the bank reconciliations, journal entries or other transactions. Cause: There are a limited number of personnel for certain functions. Effect: Transactions could be mishandled. Recommendations: I recommend that the Organization set up processes and procedures to ensure an adequate segregation of duties occurs and that bank reconciliations are prepared monthly and those bank reconciliations as well as any journal entries prepared are reviewed and visible approval is noted. Views of Responsible Officials (Unaudited): This audit was a review of financials from previous management agent. However, the new management company has a system to ensure that all monthly financials are reviewed and approved. There are designated positions assigned to ensure financials are reviewed and approved.

Criteria: Proper financial statement closing procedures should be done monthly and on an annual basis. Balance sheet accounts should be reconciled to the subsidiary ledger and the appropriate statements. Condition: There is a lack of proper financial statement closing procedures being done by the Organization. Questioned Costs: None were noted. Context: Significant and material adjusting journal entries were made in the current period, in order to present materially correct financial statements. Cause: Bank reconciliations were not performed in a timely manner; transactions were coded incorrectly during the period. Effect: Transactions could be mishandled, and financial information could be unreliable. Recommendations: I recommend that the Organization set up processes and procedures to ensure reconciliations are prepared monthly, and subsidiary ledgers are reconciled monthly as well. Views of Responsible Officials (Unaudited): This audit was review of financials from previous management agent. Current management agent has financials reconciled monthly and board approval.