Finding 526112 (2023-004)

2023-004: Data Collection Form Submission – Material Weakness Criteria and Condition: 2 CFR 200.512 requires that the data collection form be submitted at the earlier of nine months after the audit period or thirty days after the auditee receives the auditors’ report. Context: Delays in the audit process did not allow for audit completion prior to the nine month required report submission date. Cause: Staffing changes and loss of institutional knowledge at the Foundation ultimately resulted in delays in providing requested audit documentation in a timely manner. Effect: The data collection form for the 2023 audit was submitted outside of the required submission deadline. Questioned Costs: This finding does not result in questioned costs. Recommendation: Procedures should be developed whereby knowledge and documentation supporting the activities of the Foundation are not lost upon transition of staff and allows the Foundation maintain adequate operational efficiency and regulatory compliance.   Views of Responsible Officials and Planned Corrective Actions: I feel that there is a fundamental misunderstanding between the audit firm and NMF accounting staff on this issue. During the audit process, NMF accounting staff responded to requests from the auditors in a timely manner. Frequently, we would submit documentation and then we would not hear back for weeks. What would be helpful is an agreed upon time frame for the audit and due dates when responses are required. We will meet all due dates. It would be helpful if the Pulakos Accounting web portal for submitting documentation was organized according to the PBC requests using Smart Sheet or a similar software. It would make tracking response much easier.