Finding Text
Finding 2020-001: State Audit Law and Single Audit Reporting
Federal Program: Research and Development Cluster (Education and Human Resources)
Assistance Listing Number and Title: 47.076 STEM Education
Name of Federal Agency, Pass Through Entity (when applicable), Award Number and Year: National Science Foundation: 1431638 (9/1/2014 – 8/31/2022), 1524963 (11/1/2015 – 9/30/2021), 1500529 (9/1/2015 – 8/31/2022), 1624185 (9/16/2016 – 8/31/2022), 1640791 (9/15/2016 – 8/31/2022), 1720869 (5/15/2017 – 4/30/2022), 1726113 (8/1/2017 – 9/30/2023), 1645003 (3/15/2017 – 2/29/2020), 1821462 (7/1/2018 – 6/30/2024), 1812860 (9/1/2018 – 8/31/2020), 1940925 (1/15/2020 – 12/31/2023), 1907950 (7/1/2019 – 6/30/2024), 2015205 (4/1/2020 – 3/31/2022), 2021059 (10/1/2020 – 9/30/2024)
Federal Program: Research and Development Cluster (Mathematical and Physical Sciences)
Assistance Listing Number and Title: 47.049 Mathematical and Physical Sciences
Name of Federal Agency, Pass Through Entity, Award Number and Year: National Science Foundation: 1821372 (10/1/2018 – 9/30/2024 pass through entity American Physical Society), 1834530 (9/1/2018 – 8/31/2025 pass through entity American Physical Society), 1938815 (8/1/2020 – 7/31/2024)
Federal Program: Research and Development Cluster (Science)
Assistance Listing Number and Title: 43.001 Science
Name of Federal Agency, Pass Through Entity: National Aeronautics and Space Administration: NNX16AR36A (8/24/2016 – 8/23/2021 pass through entity Temple University of the Commonwealth System of Higher Education)
Significant Deficiency in Internal Controls Over Compliance, Other matters
Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per Executive Article 7-A, Section 172-B of New York law, non-profit organizations chartered in the State of New York were required to complete and file their annual financial report including the audit by May 15 of the following year for non-profits with a fiscal year end of December 31st. An automatic six month extension has been granted by the New York State Attorney General’s Charities Bureau to all non-profits since 2015, and for 2020 an additional six months was granted by the New York State Attorney General’s Charities Bureau due to the Covid-19 pandemic. With these two automatic extensions, the due date to file the annual financial report including the audit was May 15, 2022.
Title 2, Part 200 Section 512 of the Code of Federal Regulations states that an auditee’s audit required under Title 2, Part 200 Section 501 must be completed and the data collection form and reporting package submitted within the earlier of 30 days after the receipt of the auditor’s report(s) or nine months after the end of the audit period. As part of memo M 21-20, an automatic extension was granted by the Office of Management and Budget of the Executive Office of the President of the United States that permitted auditees to file their audit required under Title 2, Part 200 Section 501 (single audit) by six months after the normal due date. With this automatic extension, the due date to file the audit was March 31, 2022.
Condition: AAPT did not timely file the audit with the annual financial report with the State of New York. AAPT did not timely file the single audit with the Federal Clearing House.
Cause: AAPT was unable to perform their year-end close timely and retain an auditor in order to have the annual audit completed.
Effect or Potential Effect: New York law permits the State’s Attorney General to revoke non-profit status when audits are not filed timely. Federal awarding agencies may take actions including determining to not award grants to entities who are not compliant with regulations, and audit findings can restrict AAPT's ability to negotiate an indirect cost rate with the Federal government.
Questioned Costs: None noted.
Identification as a Repeat Finding, if Applicable: Not a repeat finding
Recommendation: We recommend that AAPT implement procedures to enhance its month-end
and year-end close procedures to improve the ability of AAPT to produce financial data to meet the criteria established by Executive Article 7-A, Section 172-B of New York law.
Views of Responsible Officials and Planned Corrective Actions: AAPT has institute new policies and deadlines for staff to submit the required documentation in order for the accounting department to close the monthly books on a more timely and accurate financial statements. The
polices include new staff repercussions for not following the new policies up to termination of employment.
Anticipated Completion Date: October 15, 2024
Responsible Official: Michael Brosnan, CFO