LAMAR COUNTY FOOD PANTRYNon-Profit

B. Financial Statement Findings Material Weaknesses Item 2020-001 Limited Segregation of Duties Condition: Limited Segregation of Duties ? This condition is caused by the limited number of employees assigned to financial management responsibilities. Criteria: Segregation of duties is the basic building block for risk management and internal controls for any business. The basic principle of segregation of duties is based on shared responsibilities of key processes and functions. Without this segregation, the business is at a higher risk for fraud and errors. Effect: As a result, there is a material weakness in internal control such that there is a reasonable possibility that a material misstatement of the Food Pantry?s financial statements will not be prevented or detected in a timely basis. Cause: Limited number of employees assigned to financial management and processing duties and responsibilities. Recommendations: We recommend that the Board Members maintain close oversight of the Food Pantry?s operations. We recommend the following procedures for the Board: ? Consider reassignment of duties to provide needed segregation. ? Ensure procedures are in place for collection of donations and deposit to the bank with correct oversight and accountability. ? Locking QuickBooks each month after the financials and bank statements have been reviewed and approved by the board. Views of Responsible Official: Allan Hubbard, Executive Director The Food Pantry?s management agrees with the finding and are taking the recommendations under consideration.