Case Study: Strengthening the Internal Controls of a Labor Union
Executive Summary
The Labor Union faced various material weaknesses in their financial processes, including bank reconciliations, payroll documentation, and other significant deficiencies.
Withum’s approach involved working with the Labor Union’s management to understand their processes, conduct assessments, and provide recommendations for improving their internal controls.
About the Client
A Labor Union.
The Challenge
The client encountered multiple challenges with their internal controls. One of them was the reporting and accrual of vacation and sick time. Another was the payroll documentation and the allocation of compensation and benefits. A third was the segregation of duties and the authorization of access to critical information (e.g., bank information).
The Approach and Solution
Customized Solutions for Your Organization Tailoring Services to Fit Your Needs
- One size does not fit all.
- Our team collaborated with management to customize a service package that aligns with the organization’s unique needs.
Strategic Plan: We partnered with management to outline a comprehensive review of existing controls and processes.
Timely Evaluation: Rather than waiting for deficiencies to emerge, we recommend proactively evaluating internal controls.
Benefits: Addressing issues proactively enhances efficiency and reduces long-term costs.
Empowering Success: Withum worked closely with the client to understand their pain points.
Our goal: Set them up for a successful next audit.
The Results
- Review of 17 Deficiencies – Our comprehensive analysis assisted management in tightening up their controls and processes.
- Successful Resolution of Deficiencies – We collaborated with the Labor Union’s management to identify solutions and recommendations.
- Developed a Plan – Working closely with the Labor Union’s management, we created a plan of action for handling changes within management.
By meticulously reviewing their processes, Withum set the client up for success by improving efficiency, ensuring adequate financial controls, and eliminating deficiencies.