Audit 366769

SIGNIFICANT DEFICIENCIES 2024-001 Oversight of Financial Reporting Condition: Mylan Park Properties and Mylan Park Foundation have experienced rapid operational growth, which has outpaced the capacity of their accounting function. The organization currently lacks sufficient qualified accounting staff to ensure the timely and accurate preparation of financial and grant-related reports. This has resulted in delays and inconsistencies in reconciling accounts, preparing donor-restricted net asset schedules, and completing grant documentation required for compliance audits. Cause: Multiple revenue streams are managed through separate software systems and internal controls, requiring manual entries and reconciliations. These manual processes contribute to delays and inconsistencies, particularly in reporting promises to give and government grants. Although an external CPA firm assists with monthly processes, many reconciliations are still handled by a limited internal team, with support from the Board Treasurer. Effect: The deficiencies in staffing and process integration have led to delayed and inconsistent financial and grant reporting, which may impact the organization’s ability to meet compliance and audit requirements in a timely manner. Recommendation: We recommend that management undertake a comprehensive review of financial and grant reporting processes. This should include evaluating the need for additional specialized accounting and compliance staff, reassigning key functions to improve segregation of duties and eliminate bottlenecks, and instituting formal supervision and second-level review protocols. Management’s Response: In response, the organization has hired a licensed CPA as Comptroller with sufficient experience to strengthen oversight of financial and grant reporting. This position is expected to enhance the timeliness and accuracy of reporting processes, improve internal controls, and support the implementation of financial and organizational policies and procedures. Management also plans to improve organizational systems to aid in data tracking and financial system integration and efficiency. Management acknowledges that additional accounting staff are still needed to fully remediate the deficiencies noted and is actively evaluating staffing needs to support continued growth and ensure compliance.

SIGNIFICANT DEFICIENCIES 2024-001 Oversight of Financial Reporting Condition: Mylan Park Properties and Mylan Park Foundation have experienced rapid operational growth, which has outpaced the capacity of their accounting function. The organization currently lacks sufficient qualified accounting staff to ensure the timely and accurate preparation of financial and grant-related reports. This has resulted in delays and inconsistencies in reconciling accounts, preparing donor-restricted net asset schedules, and completing grant documentation required for compliance audits. Cause: Multiple revenue streams are managed through separate software systems and internal controls, requiring manual entries and reconciliations. These manual processes contribute to delays and inconsistencies, particularly in reporting promises to give and government grants. Although an external CPA firm assists with monthly processes, many reconciliations are still handled by a limited internal team, with support from the Board Treasurer. Effect: The deficiencies in staffing and process integration have led to delayed and inconsistent financial and grant reporting, which may impact the organization’s ability to meet compliance and audit requirements in a timely manner. Recommendation: We recommend that management undertake a comprehensive review of financial and grant reporting processes. This should include evaluating the need for additional specialized accounting and compliance staff, reassigning key functions to improve segregation of duties and eliminate bottlenecks, and instituting formal supervision and second-level review protocols. Management’s Response: In response, the organization has hired a licensed CPA as Comptroller with sufficient experience to strengthen oversight of financial and grant reporting. This position is expected to enhance the timeliness and accuracy of reporting processes, improve internal controls, and support the implementation of financial and organizational policies and procedures. Management also plans to improve organizational systems to aid in data tracking and financial system integration and efficiency. Management acknowledges that additional accounting staff are still needed to fully remediate the deficiencies noted and is actively evaluating staffing needs to support continued growth and ensure compliance.