FAC Explorer

Finding 384251 (2023-002)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-03-25
Audit: 297400
Organization: Manhattan School of Music (NY)
Auditor: Crowe LLP

AI Summary

  • Issue: Adjustments were needed for the endowment portfolio to accurately reflect net assets with donor restrictions.
  • Trend: Inadequate review processes and monitoring contributed to these discrepancies, linked to high turnover in the Finance Department.
  • Recommendation: Strengthen the review and oversight processes to ensure accurate tracking of endowment assets moving forward.

Finding Text

Condition: During the audit of net assets, several adjustments were made to the endowment portfolio to reflect the appropriate net assets with donor restrictions balance at year-end. Context: As a result of audit procedures performed, several corrections related to the endowment portfolio were made which is attributable to inadequate review process and monitoring over endowment. The review oversight stemmed from high turnover within the Finance Department.

Corrective Action Plan

During the spring 2023, the Interim SVP and CFO recognized the School’s Trial Balance needed to better distinguish between Net Assets without Donor Restrictions and Net Assets with Donor Restrictions. That enhanced viewing was accomplished during the spring 2023 and the Interim SVP and CFO believes that effort and Management’s Response to Finding 2023-001 will improve the accounting and reporting of net assets including the endowment.

Categories

Subrecipient Monitoring Internal Control / Segregation of Duties

Other Findings in this Audit

  • 384247 2023-003
    Significant Deficiency
  • 384248 2023-004
    Material Weakness
  • 384249 2023-005
    Significant Deficiency Repeat
  • 384250 2023-001
    Material Weakness
  • 960689 2023-003
    Significant Deficiency
  • 960690 2023-004
    Material Weakness
  • 960691 2023-005
    Significant Deficiency Repeat
  • 960692 2023-001
    Material Weakness
  • 960693 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $9.16M
84.138 Federal Perkins Loan Program $488,846
84.063 Federal Pell Grant Program $330,097
84.033 Federal Work-Study Program $97,909
84.007 Federal Supplemental Educational Opportunity Grants $75,195