FAC Explorer

Audit 19565

FY End
2022-06-30
Total Expended
$2.25M
Findings
2
Programs
3
Organization: Chesapeake Research Consortium, Inc. (MD)
Year: 2022 Accepted: 2023-03-30
Auditor: Kbst&m

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
15948 2022-005 Significant Deficiency - P
592390 2022-005 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
66.466 Chesapeake Bay Program $1.68M Yes 1
11.457 Chesapeake Bay Studies $488,186 - 0
47.050 Geosciences $86,993 - 0

Contacts

Name Title Type
K5DGXNSLGLT5 Matthew Trommatter Auditee
4107981283 Deanna M. Amos Auditor
No contacts on file

Notes to SEFA

Title: Reconciliation to Statement of Activities Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Chesapeake Research Consortium, Inc. (the Consortium) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Consortium, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Consortium. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Program expenditures presented on the Statement of Activities does not agree with the Schedule of Expenditures of Federal Awards as follows: Agency In-Kind-Contribution-$64,402, Reimbursed Indirect Costs-$263,020, Allowable Administrative Costs-$10,000, Total CBP Reconciling Adjustment-$337,422; Chesapeake Bay Studies: Reimbursed Indirect Costs-$49,016, Non-Federal Program Funds-($2,665), Total Chesapeake Bay Studies Reconciling Adjustment-$46,351: Geosciences: Reimbursed Indirect Costs/Total Geosciences Reconciling Adjustment-$14,046.

Finding Details

Finding 2022-005
2022-005 Chesapeake Bay Program - Grant No. CB96343601; Grant period - Year ended June 30, 2022. Significant Deficiency. As discussed at Finding 2022-004 2022-004 Internal Controls over Financial Reporting. Condition: Credit card bills are being paid by the Consortium which include allowable/allocable costs related to the major programs. Intercompany payables for grant expenditures relating to the credit card bills are not being recorded; however, the intercompany receivables are being recorded for the Consortium. Criteria: Internal controls should be in place to provide reasonable assurance that when credit card charges are incurred and the bills are paid by the Consortium, the corresponding grant expense/payables and intercompany receivables are recorded. Cause: Inadequate design of controls over recording intercompany credit card expenditures. Effect: Grant expenditures were understated. Recommendation: Accounting processes and procedures should be reviewed and revised to include the process of allocating credit card bills to corresponding grants and reconciling the intercompany receivables and grant payables. Views of Responsible Officials and Planned Corrective Actions: The Consortium agrees with the finding and are working to improve the accounting processes and procedures.
Finding 2022-005
2022-005 Chesapeake Bay Program - Grant No. CB96343601; Grant period - Year ended June 30, 2022. Significant Deficiency. As discussed at Finding 2022-004 2022-004 Internal Controls over Financial Reporting. Condition: Credit card bills are being paid by the Consortium which include allowable/allocable costs related to the major programs. Intercompany payables for grant expenditures relating to the credit card bills are not being recorded; however, the intercompany receivables are being recorded for the Consortium. Criteria: Internal controls should be in place to provide reasonable assurance that when credit card charges are incurred and the bills are paid by the Consortium, the corresponding grant expense/payables and intercompany receivables are recorded. Cause: Inadequate design of controls over recording intercompany credit card expenditures. Effect: Grant expenditures were understated. Recommendation: Accounting processes and procedures should be reviewed and revised to include the process of allocating credit card bills to corresponding grants and reconciling the intercompany receivables and grant payables. Views of Responsible Officials and Planned Corrective Actions: The Consortium agrees with the finding and are working to improve the accounting processes and procedures.