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Indian River County Healthy Start Coalition, Inc. <br /> Summary Schedule of Prior Audit Findings (continued) <br /> State Financial Assistance Projects <br /> 01w3 Review and Oversight <br /> (2001) <br /> Reportable Condition: At the beginning of our audit we noted a copious number of <br /> errors , omissions , misstatements and misclassifications in the organizations accounting <br /> records and financial statements . This was the result of errors by the financial secretary <br /> and lack of proper review and oversight by the executive director, finance committee, <br /> and Board of Directors. This condition is deemed to be a material weakness . <br /> Criteria: The accounting records should be timely and accurately, maintained in <br /> accordance with generally accepted accounting principals . <br /> Effect: Accounting records and financial statements that are materially misstated. <br /> Recommendation: The executive director should be providing more accounting review <br /> and oversight. To qaccomplish this , we suggest that the executive director take classes in <br /> the principals of accounting. Additionally, the finance committee should be strengthened <br /> by the recruitment of Board member' s with financial or accounting backgrounds . Lastly, <br /> the size of the organization's accounting and administrative staff precludes certain <br /> internal controls that would be preferred if the office staff were large enough to provide <br /> optimum segregation of duties . This situation dictates that the Board of Directors <br /> becomes more intimately involved in the financial affairs of the organization to provide <br /> oversight and independent review functions. <br /> Current Status: Management agrees with the auditor's recommendation regarding more <br /> involvement of the Board of Directors , and the Executive Director providing more <br /> accounting review and oversight. A new policy has been adopted whereby the Executive <br /> Director and Fiscal Coordinator meet weekly to review questions, problem areas and <br /> various other accounting processes in order to insure conformity with generally accepted <br /> accounting principles. The Executive Director has taken and successfully passed a <br /> course on the' `principals of accounting. An individual with accounting expertise now <br /> serves on the Finance Committee and the Board , of Directors . Lastly, the Board of <br /> Directors passed several motions in the March 2002 Board meeting that have resulted in <br /> more involvement by the board , with respect to financial matters . <br /> - 18 - <br />