Finding 1148084 (2024-003)

CRITERIA / REQUIREMENT: Monthly, quarterly, semi-annual, and annual reports should be prepared, reviewed, and timely submitted to funding agencies. CONDITION / CONTEXT: Certain quarterly, semi-annual, and annual reports were reviewed by the same personnel responsible for their preparation. In addition, 5 of the 16 total reports tested were submitted after the due dates specified in the respective agreements. CAUSE: Inadequate controls exist over segregation of duties related to report preparation and review duties. Operational deficiencies in tracking reporting due dates were caused by turnover in recent periods. EFFECT: Reports may be inaccurate and not submitted timely to funding agencies, resulting in potential loss of future funding or required refunding of funding received. QUESTIONED COSTS: None. RECOMMENDATION: Controls should be implemented to ensure appropriate review by individuals not involved in preparation of reports. In addition, controls should be implemented to track the due dates of reporting requirements to ensure timely submission. MANAGEMENT’S RESPONSE: NAYA experienced disruption due to COVID-19 and organizational growth that had impacts on capacity. New contracts and sources of funding are now being identified and recorded in the accounting system and grants tracker, including programmatic quarterly, semi-annual, and annual reports due. Finance will update the Fiscal Policies and Procedures to include guidelines on Programmatic Reports and Guidelines as well as coordinate with respective departments in meeting the reporting guidelines.