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Health & Fitness

Additional comments from Auditors

Other Audit Findings or Issues
Although the following is not a required part of our documentation, we find board members, trustees,and management appreciate feedback on certain items from a third-party point of view.

Adequate segregation of duties – As with any first year engagement with our firm, we sample a larger amount of cash disbursements for approval processes and a shadowing of cash-related items, processing and recordation of same. During the scope of our fieldwork, we selected 93 invoices for testing and noted appropriate segregation of duties as well as authorization by responsible parties, without exception. We noted all employee reimbursements tested were reviewed, approved and recorded by an unrelated party authorized to approve such reimbursement. We also oversaw a daily cash deposit count, reconcilement, approval and related posting, as well as a random selection of 10 other dates throughout the calendar year, without exception. We noted sufficient written policies and procedures pertaining to segregation of duties and continual oversight on a routine basis by management, to include impressing upon staff members the importance of their fiduciary responsibilities.

Staff interaction and competence over financial data – It is without a doubt that we are pleased to indicate that our interaction with your professional staff was beyond excellent. In most cases, document requests were provided within a matter of hours and all inquiries answered immediately. Knowledge of the industry, both with non-profits as well as community associations as a whole, is exemplary with your professional team. An extremely attentive and responsive team is clearly indicative of a professional environment that is well prepared and knowledgeable at all times, and it was a true pleasure working with such a professional team.

Cash on hand – It was noted that cash on hand can be in excess of $5,000, depending on the time of the year. It was noted that bank runs are increased, as deemed necessary, and that all cash is held in a secure safe, not accessible by unauthorized staff. Amounts held at any given time are below employee theft and other insurance limits, in case of any potential loss.

Late paid invoices – During the course of our invoice sampling, there were a few invoices noted as paid late. In all cases it was clearly demonstrated that the previous month’s invoice had not been received, and responsible staff in all cases had any late charges removed by contacting the issuing party and requesting abatement. We applaud this effort obviously, as it is a clear demonstration of management’s fiduciary oversight of the organization and its appreciation of overall fiscal responsibilities.

This information is intended solely for the use of the board of directors and management of Montgomery Village Foundation, Inc. and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,   Malvin, Riggins & Company, P.C.

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