Finding 1146 (2022-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-11-02
Audit: 2196
Auditor: Forvis LLP

AI Summary

  • Core Issue: There is a material weakness in internal controls related to financial reporting.
  • Impacted Requirements: The organization lacks effective processes for reconciling balance sheet accounts.
  • Recommended Follow-Up: Strengthen monthly reconciliation procedures for all accounts.

Finding Text

Type of Finding: Material Weakness in Internal Control over Financial Reporting Criteria: The Organization should have processes and procedures in place to reconcile balance sheet accounts. Condition: During our audit, we noted errors, and proposed audit adjustments during substantive testing procedures. Cause/Effect: Internal control processes over reconciling and reporting of balance sheet account balances were not operating effectively. Questioned Costs: N/A Recommendation: We recommend that procedures for reconciling all accounts on a monthly basis be strengthened. Views of Responsible Officials and Correction Action: Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.

Corrective Action Plan

The Company agrees that complete and timely reconciliation of all balance sheet accounts is necessary to ensure the accuracy of its financial results. The Company’s previous controller maintained internal control processes for the appropriate reconciliation and reporting of all balance sheet accounts. The third-party consultants did not follow those same processes consistently. We have modified all monthly close and reporting procedures to ensure consistent reconciliation of all balance sheet accounts with the appropriate oversight.

Categories

Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1147 2022-002
    Significant Deficiency
  • 577588 2022-001
    Material Weakness
  • 577589 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
43.RD NASA Academic Mission Service Projects $22.35M
43.RD NASA Internship Projects (intern) $17.51M
43.RD NASA Post Doctorate Program Projects $6.67M
43.RD Marshall Space Flight Center Projects (msfc) $4.54M
12.RD Interns Program $4.43M
43.RD Advanced Research and Technology Support $4.32M
43.RD Goddard Earth Sciences Technology and Research Projects (gestar) $3.02M
43.RD Science Systems and Applications, INC $822,738
15.RD Research Institute for Advanced Computer Science $527,964
47.RD Research Institute for Advanced Computer Science $299,449
81.RD Idaho Projects $262,303
47.RD Stratospheric Observatory for Infrared Astronomy $122,993
12.RD Research Institute for Advanced Computer Science $75,313
43.RD Research Institute for Advanced Computer Science $43,688
11.RD Earth From Space Institute (efsi) $11,498
43.RD Lunar and Planetary Institute $8,969
43.RD Gestar $8,967
43.RD Marshall Space Flight Center Projects (mfsc) $6,444
43.RD Stratospheric Observatory for Infrared Astronomy $5,567
66.509 Science to Achieve Results (star) Research Program $4,948
43.RD Earth From Space Institute $3,405
47.RD Marshall Space Flight Center Projects (msfc) (sti) $2,754
15.RD Lunar and Planetary Institute $276