New Mexico Community FoundationNon-Profit

Criteria: According to 2 CFR 200.512, the annual single audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period (September 30, 2025). Condition: The Foundation’s 2024 single audit reporting package was not submitted by the due date of September 30, 2025. Questioned Costs: None Context: N/A Cause: The Foundation experienced turnover in the accounting department in key positions in recent years, which caused significant delays in completion of the year-end reconciliations of the financial statements and the schedule of expenditures of federal awards. Effect: The Foundation was unable to completely reconcile certain general ledger accounts timely, which resulted in the audit not being completed within the reporting deadline. Auditor’s Recommendation: The Foundation should implement its approved policies and procedures and complete the year-end account reconciliations in a timely manner to ensure the timely completion of the audit and submission of the single audit reporting package. Management’s Response: The Foundation acknowledges that the 2024 single audit reporting package was not submitted by the September 30, 2025 deadline under 2 CFR 200.512. This delay resulted directly from the challenges detailed in Finding 2024-001. Significant accounting turnover delayed year-end reconciliations and SEFA preparation. The Foundation has implemented substantial corrective actions to address root causes and ensure future timeliness. As outlined in the response to Finding 2024-001, comprehensive SOPs now govern financial close, revenue/deposit processing, reconciliations, payroll, fiscal sponsorship financial management, and fund setup. These promote consistent monthly GL reconciliations, accurate/timely transaction recording, strong documentation, and efficient inter-departmental coordination. Supporting improvements include standardized monthly reporting, system integrations reducing manual workSection III—Federal Award Findings and Questioned Costs 2024-003—Late Audit Report clear responsibilities and timelines in SOPs, and emphasis on procedural continuity to mitigate transition risks. The Foundation is completing remaining 2024 items and committed to submitting the package promptly. With the enhanced control environment, the 2025 close and audit will be completed well within required timelines. Ongoing training, procedure reviews, and oversight by the Finance Director and Fiscal Sponsorship Manager will sustain compliance. By these actions, the Foundation has remediated the conditions and is positioned to meet all future single audit deadlines while maintaining strong fund stewardship.

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.