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Clarification and Response to the Roswell Daily Records NMMI, Alumni Board Face Nasty Divorce Saturday June

1, 2013 From the Roswell Daily Record: NMMI officials stand firm behind the decision to sever ties with the group at the end of April following a series of long-running financial concerns, a failure to meet a deadline to fix those problems and the Associations inability to negotiate a settlement to stayThe Institute initially cited concerns with the group following a 2012 audit that characterized financial oversight problemsAmong some findings, the audit, though characterized as clean did find the Association has been unable to keep timely financial records, according to Moss-Adams, LLPs June 30, 2012 report. The Association experienced lengthy delays in its monthly reporting and closing process and had to recreate the records after the first six months of the fiscal yearThe independent audit also found 2013 financial reporting documents remained unavailable and internal controls were deficient. Response from the Board of Directors, NMMI Alumni Association on Tuesday, June 4, 2012: The NMMI Alumni Association Board of Directors recognizes that while it faced some internal bookkeeping challenges due to excessive personnel turnover as well as some complications related to the relationship between the Association, the Foundation, and the NMMI Administration, it does not agree that these internal challenges should have in any way merited the Administrations termination of the MOA. From an accounting standpoint, the issues being cited by the NMMI Administration were minor in scope and benign in their effect on the Associations mission and financial record keeping. In the audited financial statements (Report of Independent Auditors), pages 19-20, Moss-Adams 2013 states that they found a weakness they deemed material which they reported to the Board in a separate letter (Communication to Those Charged With Governance). That material weakness cited was that the Association did not have timely financial statements. As mentioned, this was due to the turnover of 4 Executive Directors in 3-plus years. We were in the process of getting this in order when the Administration terminated the MOA. Making progress on this was difficult as the NMMI Administration had implicit control over the Associations employees for some time. In addition, the Foundation hired the Associations accounting person away from the organization in late 2011, prompting the Association to find an outside bookkeeper. In addition, curing the bookkeeping issues was delayed by such things as receiving inaccurate and inaccurately coded data from the school, a disagreement with the Foundation over operating expenses, and a delay in hiring an outside auditor by past President Jock Brownfield. The bottom line is that according to official audits, internal controls were deficient in only three instances. Note also that in the opinion letter on page 2 of the Report of Independent Auditors, that Moss-Adams says explicitly that they are not expressing an opinion on the Association's internal controls, contrary to the opinion offered by the NMMI Administration in this article.